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(C) Reuters

By Oliver Gray

Investing.com – U.S. stock futures were trading slightly higher during Wednesday’s evening trade, after a mixed session among major benchmark indices as the S&P 500 and the NASDAQ retreated amid spiking bond yields, while investors continued monitoring a fresh batch of earnings results.

By 18:30 ET (23:30 GMT) Dow Jones futures were trading 0.5% higher, while S&P 500 futures and Nasdaq 100 futures each ticked 0.1% higher.

In extended deals, Salesforce (NYSE:CRM) lifted 15.4% after the company reported Q4 EPS of $1.68 versus $1.36 expected, while revenue was reported at $8.38 billion versus $8B expected. The company also gave guidance for Q1 2024, with EPS coming in at $1.60-$1.61 versus $1.32 expected, while forecasting revenues of $8.16B-$8.18B versus $8.05B expected.

Snowflake (NYSE:SNOW) dipped 7.3% after reporting Q4 EPS of $0.14 versus $0.05 expected on revenue of $589 million versus $576.221M expected.

Okta (NASDAQ:OKTA) lifted 13.7%, reporting Q4 EPS of $0.30 versus expectations of $0.09, while revenue came in at $510M versus $489.79M expected.

American Eagle Outfitters Inc (NYSE:AEO) gained 6.6% after reporting EPS of $0.37 versus $0.3 expected while revenues came in at $1.5B versus $1.48B expected.

Ahead in Thursday’s session, market participants will be looking towards jobless claims, quarterly productivity and unit labor cost data, as well as speeches from the Fed’s Waller and FOMC member Kashkari.

On the earnings front, companies including Broadcom Inc (NASDAQ:AVGO), Costco Wholesale Corp (NASDAQ:COST), Marvell Technology Group Ltd (NASDAQ:MRVL), and Dell Technologies Inc (NYSE:DELL) are scheduled to release results.

During Wednesday’s session, the Dow Jones Industrial Average finished flat at 32,661.9, the S&P 500 fell 18.8 points or 0.5% to 3,951.4, and the Nasdaq Composite dipped 76.1 points or 0.7% to 11,379.5.

On the bond markets, United States 10-Year rates were at fresh 4-month highs of 3.994%.

(C) Reuters

By Davit Kirakosyan

Investing.com — Here is your daily Pro Recap of the biggest earnings headlines you may have missed on InvestingPro since yesterday’s close. Start your free 7-day trial to get this news first.

Rivian Automotive shares plunge on big Q4 revenue miss

Rivian Automotive (NASDAQ:RIVN) shares dropped more than 8% pre-market today after the company posted significantly worse than expected Q4 revenues of $663 million (vs. consensus of $729M) as it delivered only 8,054 vehicles from 10,020 produced.

Adjusted EPS came in at ($1.73), compared to the consensus of ($1.96).

The company’s production forecast for 2023 fell below analysts’ expectations, with an anticipated production of 50,000 vehicles and an adjusted EBITDA of ($4.3B) for the full year.

Novavax shares plummet on Q4 miss and announced ‘going concern’ qualification

Novavax (NASDAQ:NVAX) shares plunged more than 24% pre-market today after the company reported a Q4 miss and announced a “going concern” qualification.

EPS came in at ($2.28), worse than the consensus of ($1.19). Revenue was $357M, missing the consensus estimate of $383.14M.

The company said it aims to reduce spending and operate efficiently to maximize opportunities and mitigate uncertainties in the COVID-19 market, but noted there is substantial doubt about its ability to continue as a going concern for one year due to revenue and funding uncertainties.

HP reports mixed Q1 results, shares rise

HP (NYSE:HPQ) rose more than 3% pre-market today following mixed Q1 earnings results. EPS came in at 0.75, better than the consensus of $0.74, while revenue of $13.8B missed the consensus estimate of $14.15B due to a weaker demand backdrop for personal computing and printer demand.

The company expects Q2/23 EPS in the range of $0.73-$0.83, compared to the consensus of $0.75. For the full year, EPS is expected in a range of $3.20-$3.60, compared with consensus estimates of $3.29.

Puma posts record 2022 revenues but sees 2023 profit falling, hikes dividend

Puma (ETR:PUMG) (OTC:PMMAF) reported record results in 2022, with a 19% rise in sales to EUR8.47B (EUR1 = $1.0642), a 15% rise in EBIT to EUR641M, and a 14% rise in EPS to EUR2.36.

Despite the strong performance last year due to factors such as the soccer World Cup and weak euro, Puma expects profits to be affected by currency movements, high freight rates, and raw materials prices.

It provided a wide forecast range of EUR590M-EUR670M for EBIT this year, with revenue growth expected to slow to just under 10%.

Furthermore, the company hiked its dividend by 14% to $0.82 a share, at the top end of its targeted payout range of 25%-35% of net earnings.

Shares were down more than 3% intra-day today in Frankfurt.

First Solar rises on Q4 beat & better-than-expected guidance

First Solar Inc (NASDAQ:FSLR) shares rose more than 4% pre-market today following better-than-expected Q4 earnings and 2023 guidance announcement.

EPS came in at ($0.07), compared to the consensus estimate of ($0.17). Revenue was $1B, in line with expectations.

For the full 2023 year, the company expects revenue in the range of $3.4-$3.6B, compared to the consensus of $3.34B, and EPS in a range of $7-$8, compared to the consensus estimate of $4.77.

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(C) Reuters. FILE PHOTO: The logo of Tesla is seen at a Tesla Supercharger station October 21, 2020. REUTERS/Arnd Wiegmann

MEXICO CITY (Reuters) -Tesla will open a gigafactory in Mexico, Chief Executive Elon Musk said on Wednesday, as the electric vehicle behemoth pushes to expand its global output.

Mexico on Tuesday said Tesla (NASDAQ:TSLA) had chosen the northern border state of Nuevo Leon for a new factory worth more than $5 billion, calling it the “the biggest electric vehicle plant in the world”.

Tesla will ramp up output at all of its gigafactories, Musk said at an Investor Day event Austin, Texas. The company laid out plans to cut assembly costs by half in future generations of cars and discussed its innovation in managing operations from manufacturing to service.

The plant near the city of Monterrey “will be supplemental to the output of all the other factories,” Musk said at the end of the more than 3-hour long presentation, calling it “probably the most significant announcement of the day.”

Tesla’s global capacity was 2 million vehicles a year, Tom Zhu, the new global production chief, said at the event.

Musk’s annoucement was Tesla’s first public statement about its plans for Mexico after months of speculation and phone calls between Musk and Mexican President Andres Manuel Lopez Obrador.

Musk did not provide details of how many vehicles the factory would produce in a year and Tesla’s investment in it.

The company’s other plants are in the U.S., Germany and China.

The project marks the biggest in a string of recent EV investments in Latin America’s second-largest economy.

Before Tesla, BMW, General Motors (NYSE:GM) and Ford all recently announced plans to begin or step up EV production in Mexico as automakers transition away from fossil fuels.

Tesla will create up to 6,000 jobs in Nuevo Leon and is considering producing batteries in the center of the country as the electric vehicle maker eyes further investment, senior Mexican officials said.

MORE INVESTMENT

“(Musk) is interested in investing more in Mexico,” Lopez Obrador said on Wednesday ahead of Musk’s presentation, noting the two had discussed the government’s plans to develop the Isthmus of Tehuantepec in southern Mexico.

Speaking at a news conference, Lopez Obrador said he had invited Musk to visit and would like him to tour the northern state of Sonora, where the government is building a solar energy park and pushing for state-run lithium production.

“I told him lithium has been nationalized, but that doesn’t mean we can’t come to an agreement,” he said.

Tesla selected Nuevo Leon for its plant due to its proximity to Austin, where it has its headquarters, said Martha Delgado, a deputy foreign minister.

The factory will employ 5,000 to 6,000 people, she added, noting that similar Tesla plants employ up to 10,000.

The company had also visited the central states of Hidalgo, Queretaro and Puebla, areas that could be options for electric battery production, Delgado said.

Guillermo Rosales, executive president of the Mexican Association of Automotive Distributors, welcomed the project.

“Generation of employment, consolidation and development of suppliers; as well as the level of confidence that it provides for the decision-making of other players in the automotive industry to invest in Mexico are some of the benefits,” Rosales said.

(C) Reuters.

By Liz Moyer

Investing.com — U.S stocks are wobbling to start a new month after ending February on a down note.

At 10:39 ET (15:39 GMT), the Dow Jones Industrial Average was up 18 points or 0.1%, while the S&P 500 was down 0.2% and the NASDAQ Composite was down 0.3%.

Investors are worried that the Federal Reserve will have to raise rates more than expected to tame inflation after hotter-than-expected data. Two-year Treasuries hit a four-month high earlier on Wednesday.

Futures traders are now betting that the Fed will raise rates to 5.25% to 5.50% by the end of the summer, higher than the central bank itself forecast as recently as December. The current range is 4.50% to 4.75%, implying at least two more quarters of percentage point hikes starting in March.

ISM manufacturing data for February was slightly weaker than expected at 47.7 versus the forecast for 48. The reading was higher than the 47.4 reported earlier. The jobs report for February is due out next week.

Shares of COVID-19 vaccine maker Novavax Inc (NASDAQ:NVAX) tumbled 25% after it said it might not be able to stay operational. It is slashing spending as it prepares to roll out a vaccine for the fall. Shares of Eli Lilly (NYSE:LLY) rose 1.7% after it agreed to cut the price of insulin by 70% after pressure from President Joe Biden to lower the cost of diabetes treatment.

AMC Entertainment Holdings Inc (NYSE:AMC) shares were down 5.5% after the movie theater chain reported a drop in revenue and said industry box office sales might take longer than expected to recover from the pandemic.

Oil rose. Crude Oil WTI Futures were up 0.3% to $77.28 a barrel and Brent Oil Futures were up 0.5% at $83.90 a barrel. Gold Futures were up 0.6% to $1,848.

(C) Reuters

By Davit Kirakosyan

Investing.com — Here is your daily Pro Recap of the biggest dividend headlines you may have missed on InvestingPro. Start your free 7-day trial to get this news first.

Jackson Financial hikes dividend, increases buyback, but shares down on Q4 revenue miss

Jackson Financial (NYSE:JXN) hiked its dividend by 13% to $0.62 per share, for an annual yield of 5.5%. The dividend is payable on March 23, 2023, to shareholders of record at the close of business on March 14, 2023.

The company also authorized an increase of $450 million to its existing share repurchase authorization, which has $90M remaining as of Feb 22.

The company reported its Q4 results yesterday, with EPS beating the consensus estimates, while revenues coming in significantly worse than expected.

Shares fell more than 5% pre-market today.

Saratoga Investment hikes payout, maintains 10% yield

Saratoga Investment (NYSE:SAR) hiked its dividend by 1.5% to $0.69 per share, or $2.76 annualized, for an annual yield of 10%. The dividend will be payable on March 30, 2023, to stockholders of record on March 16, 2023, with an ex-dividend date of March 15, 2023.

4 more hikes

Linde (NYSE:LIN) hiked its dividend by 9% to $1.275 per share, or $5.1 annualized, for an annual yield of 1.5%. The dividend will be payable on March 28, 2023, to stockholders of record on March 14, 2023, with an ex-dividend date of March 13, 2023.

Delek US (NYSE:DK) hiked its dividend by 4.8% to $0.22 per share, or $0.88 annualized, for an annualized yield of 3.2%. The dividend will be payable on March 17, 2023, to stockholders of record on March 10, 2023, with an ex-dividend date of March 9, 2023.

RCI Hospitality (NASDAQ:RICK) hiked its dividend by 20% to $0.06 per share, or $0.24 annualized, for an annual yield of 0.3%. The dividend will be payable on March 29, 2023, to stockholders of record on March 15, 2023, with an ex-dividend date of March 14, 2023.

Valmont Industries (NYSE:VMI) hiked its dividend by 9% to $0.60 per share, or $2.40 annualized, for an annual yield of 0.75%. The dividend will be payable on April 14, 2023, to shareholders of record on March 31, 2023. The Company previously increased the dividend by 10% in February 2022.

The company also announced a $400M buyback, which will be effective once the current authorization (approximately $81M remaining as of December 31, 2022) is completed.

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(C) Reuters.

By Liz Moyer

Investing.com — Stocks went in different directions on Wednesday, starting the month off on wobbly footing as investors await the next move by the Federal Reserve.

Investors are fearing that interest rates will stay higher for longer. Fed officials have been talking in recent days about the need to continue to raise rates because their job taming inflation is not yet done.

Futures traders are betting on at least two more rate hikes — most likely of a quarter of a percentage point each — in March and May and for the benchmark rate to reach above 5.25% later this summer.

Hotter-than-expected economic and jobs data is giving the Fed fuel to continue to raise rates. The next big reading — the jobs report for February — is expected out next week. Until then, investors will see more data on initial jobless claims and more earnings from retailers, who can provide their own insights on the strength of the American economy.

Here are three things that could affect markets tomorrow:

1. Costco Wholesale

Costco Wholesale Corp (NASDAQ:COST) is expected to report earnings per share of $3.21 on revenue of $55.6 billion.

2. Kroger earnings

Grocery giant Kroger Company (NYSE:KR) is expected to report earnings per share of 89 cents on revenue of $35B.

3. Macy’s reports

Department store chain Macy’s Inc (NYSE:M) is expected to report earnings per share of $1.58 on revenue of $8.2B.

(C) Reuters.

By Geoffrey Smith

Investing.com — China’s economy grew at the fastest rate in eight months in February, gaining momentum after the end of COVID-19-related lockdowns, according to new business surveys. Tesla is expected to confirm plans for a $5 billion plant in Mexico. Arconic surges after reports of talks with private equity giant Apollo and maybe others over a possible buyout. The pound weakens and the euro rises after contrasting messages from top central bankers, and oil comes off a one-week high after fresh signs of weaker demand in the U.S. Here’s what you need to know in financial markets on Wednesday, 1st March.

1. Chinese assets, metals rise as China PMIs show reopening bounce; ISM PMI due

The yuan rallied by 1% after key business surveys showed the Chinese economy expanded at its fastest pace in eight months in February.

Both the official and the Caixin manufacturing purchasing managers indices rose markedly from January to be well above the 50 level that typically indicates growth. The official manufacturing PMI, which largely tracks the bigger, state-owned enterprises, hit its highest level in more than a decade.

The news gave a boost to industrial metals prices, which rose by between 1-2%.

The numbers came on the same day that the U.S. Institute for Supply Management publishes its manufacturing PMI for February, which is expected to show U.S. activity contracting, albeit by less than in January.

2. Tesla set to outline plans for first Mexican plant

Tesla (NASDAQ:TSLA) is set to unveil plans for its first factory in Mexico as part of a big Investor Day presentation.

Mexico’s leftist President Andr?s Manuel L?pez Obrador indicated at a news conference on Tuesday that the two sides had settled differences over the company’s plans for a plant at Monterrey in northern Mexico, which centered around Tesla’s intensive use of water in a region that doesn’t have much of the stuff.

Analysts expect the investment volume to be around $5B. The burden for Tesla will (yet again) be reduced by U.S. federal government subsidies, this time under the Inflation Reduction Act, whose provisions extend to the U.S.’s southern neighbor.

Elsewhere in the auto industry, Rivian (NASDAQ:RIVN) stock fell over 9% in premarket after the EV maker reported another big loss and fell short of expectations for its fourth quarter sales. General Motors (NYSE:GM), meanwhile, is reportedly set to cut another 500 executive jobs as part of its ongoing cost-cutting.

3. Stocks set to open higher; Arconic surges on buyout talk

U.S. stock markets are set to open modestly higher after edging lower on Tuesday in response to another set of generally weak U.S. economic data.

By 06:30 ET, Dow Jones futures were up 68 points or 0.2%, while S&P 500 futures were up 0.3% and Nasdaq 100 futures were up 0.6%.

Tesla aside, stocks likely to be in focus later include Monster Beverage (NASDAQ:MNST), whose earnings fell short of expectations late on Tuesday, and Arconic (NYSE:ARNC), which rose sharply on Tuesday after The Wall Street Journal reported is in talks to sell itself to Apollo Global Management (NYSE:APO). The news adds to signs of a thawing of the M&A market, which was frozen late last year as banks struggled to offload large amounts of unsold buyout debt.

4. Pound sags, euro firm as Bailey and Nagel send mixed messages on further rate hikes

The pound fell after Bank of England Governor Andrew Bailey appeared to play down expectations of more aggressive interest rate increases later this year. As with the euro and dollar, some better-than-expected economic data at the start of the year – including strong consumer credit data for January published earlier Wednesday – have prompted a repricing of interest rate expectations for the sterling.

However, Bailey said in a speech that “nothing is decided” despite acknowledging ongoing issues with labor market tightness – and despite figures released on Tuesday that showed food prices rose over 17% on the year in January.

In Germany, Bundesbank chief Joachim Nagel was decidedly less nuanced, saying it would be a serious mistake to stop the European Central Bank’s rate hike cycle too early. Preliminary data showed German inflation again coming in above expectations in February, while unemployment rose by less than forecast.

5. Oil dips on another big rise in U.S. inventories

Crude oil prices were broadly lower, with another big build in U.S. inventories prevailing over the supportive effect of the Chinese PMI data.

American Petroleum Institute data late on Tuesday showed another 6.2 million rise in U.S. crude stocks last week, well above expectations and skewing the market toward an upside surprise when the government publishes its data at 10:30 ET.

Analysts noted that the Chinese reopening story has been broadly priced in, by contrast.

By 06:45 ET, U.S. crude futures were down 0.9% at $76.33 a barrel, while Brent crude was down 0.6% at $82.91 a barrel.

(C) Reuters. FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., February 27, 2023. REUTERS/Brendan McDermid

By Chuck Mikolajczak

NEW YORK (Reuters) – The S&P 500 and Nasdaq fell for a second straight session on Wednesday as Treasury yields jumped after manufacturing data indicated inflation is likely to remain stubbornly high, while comments from Federal Reserve policymakers supported a hawkish policy stance.

The yield on 10-year notes topped 4% for the first time since November, reaching a high of 4.01%, after the Institute for Supply Management’s (ISM) survey showed U.S. manufacturing contracted in February and prices for raw materials increased last month.

After the data was released, the two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, gained on the day after reaching 4.904%, its highest since 2007. It was last up 8.4 basis points at 4.881%.

“You could see the market kind of deteriorated a little bit, yields started climbing after that February ISM manufacturing report. Prices paid component, that really jumped, broke a four-month streak of price declines,” said Anthony Saglimbene, chief market strategist at Ameriprise Financial (NYSE:AMP) in Troy, Michigan, referring to the ISM Manufacturing Prices Paid Index which is seen as an inflation indicator.

“That is just another piece of evidence we have seen over the past couple of weeks that inflation is remaining stickier than what most people thought in January,” he said, adding it was likely the Fed is going to move rates higher.

Saglimbene added the bond market has recently been indicating there is a greater chance the Fed could move the terminal rate somewhere close to 6%.

The Dow Jones Industrial Average rose 5.14 points, or 0.02%, to 32,661.84, the S&P 500 lost 18.76 points, or 0.47%, to 3,951.39 and the Nasdaq Composite dropped 76.06 points, or 0.66%, to 11,379.48.

The Dow held near the unchanged mark as Caterpillar (NYSE:CAT) shares rose 3.81% after the construction equipment maker said it had reached a tentative deal with a union that represents workers at four of its facilities.

Fed funds futures showed traders added to bets the U.S. central bank will raise its benchmark rate to a range of 5.5%-5.75% by September, from the current range of 4.5%-4.75%.

Further fueling concerns about central bank aggressiveness, Minneapolis Fed President Neel Kashkari, a voter in the rate-setting committee in 2023, said he is “open-minded” on either a 25 basis point or a 50 basis point rate hike in March. Atlanta Fed President Raphael Bostic said in an essay that while a federal funds rate between 5% to 5.25% would be adequate, the policy would have to remain tight “well into 2024” until inflation is clearly subsiding.

After a strong January, the main U.S. benchmarks stumbled in February on growing expectations the Fed will increase rates more than initially thought as segments of the economy such as the labor market remain tight, while inflation has not ebbed as quickly as anticipated.

U.S. monthly payrolls and consumer prices data in the coming days will further help investors gauge the path of rates ahead of the March 21-22 meeting, when the Fed is largely seen hiking rates by 25 basis points.

Energy and materials sectors were among the few winners in the session as commodity prices gained after data showed China’s manufacturing activity expanded at the fastest pace in more than a decade as the country continues to leave its COVID-19 restrictions behind.

Tesla (NASDAQ:TSLA) Inc slipped 1.43% ahead of its investor day event. The electric automaker is readying a production revamp of its top-selling Model Y, Reuters reported, citing people familiar with the plan.

Novavax (NASDAQ:NVAX) Inc plunged 25.92% after the COVID-19 vaccine maker raised doubts about its ability to remain in business and announced plans to slash spending as it prepares for a fall vaccination campaign.

Volume on U.S. exchanges was 11.00 billion shares, compared with the 11.39 billion average for the full session over the last 20 trading days.

Declining issues outnumbered advancing ones on the NYSE by a 1.32-to-1 ratio; on Nasdaq, a 1.29-to-1 ratio favored decliners.

The S&P 500 posted 9 new 52-week highs and 13 new lows; the Nasdaq Composite recorded 79 new highs and 114 new lows.

(C) Reuters.

By Yasin Ebrahim

Investing.com — The Dow closed flat Wednesday, as Treasury yields continued to advance on signs the disinflation in goods has run out of steam suggesting that the Fed’s rate-hike path may be steeper than expected.

The Dow Jones Industrial Average gained 0.02%, or 5 points, and S&P 500 fell 0.46%, and the Nasdaq Composite was down 0.66%.

The February ISM Manufacturing PMI rose to 47.7 from 47.4, but a deeper dive into the data showed fresh signs of price pressures.

The prices paid index of the ISM manufacturing report “rose out of contraction to 51.3,” Jefferies said, pointing to signs that “the disinflationary trend in goods prices that was in place at the end of last year has run out of steam.”

Fresh signs of sticky inflation pushed Treasury yields sharply higher on bets that higher for longer interest rates are needed to cull inflation. The 10-year Treasury yield topped 4% for the first since November, keeping tech stocks in the firing line and extending the slump seen in February.

On the earnings front, Lowe’s Companies Inc (NYSE:LOW) fell nearly 6% after the home improvement retailer reported fourth-quarter revenue that missed Wall Street estimates and annual sales guidance that also surprised to the downside.

“[W]e note weaker than expected ongoing sales trends that are set to persist, a sharp decline in credit income achieved in the quarter, and a margin outlook that remains muted relative to history,” Goldman Sachs said in a note.

Electric vehicle stocks were also in focus as Tesla (NASDAQ:TSLA) kicks off its investor day, with the EV maker expected to lay out its Master Plan 3 and provide insights about its long-term growth plan.

“This next ‘Master Plan’ from Musk will give further insight into the broader strategic roadmap looking ahead and lays the foundation for the next decade for Tesla with the green tidal wave hitting globally on the shift to EVs,” Wedbush said.

Rival EV maker Rivian Automotive Inc (NASDAQ:RIVN) reported mixed fourth-quarter results as revenue missed estimates, and annual production also fell shy of Wall Street expectations, sending it down more than 18%.

In other news, 3M Company (NYSE:MMM), a major Dow component, gained more than 2% as data from the Department of Defense records showed the vast majority of claimants in Combat Arms earplug litigation had “normal hearing.”

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(C) Reuters. FILE PHOTO: Tesla founder Elon Musk attends Offshore Northern Seas 2022 in Stavanger, Norway August 29, 2022. NTB/Carina Johansen via REUTERS/File Photo
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By Hyunjoo Jin, Joseph White and Akash Sriram

SAN FRANCISCO (Reuters) -Tesla Inc will cut assembly costs by half in future generations of cars, engineers told investors on Wednesday, but Chief Executive Elon Musk did not unveil when it will debut a much-awaited affordable electric vehicle.

Shares fell more than 5% in after hours trade following the company’s investor day from its Texas headquarters.

More than a dozen Tesla (NASDAQ:TSLA) executives led by Musk discussed everything from a white-paper plan for the globe to embrace sustainable energy to the company’s innovation in managing its operations from manufacturing to service.

The presentation featured an array of senior engineers, including the new global production chief, Tom Zhu, a nod to Tesla’s attempt to show the depth of its executive bench beyond Musk, the face of the company.

But there were no details about when next generation cars would be launched and what models would be offered.

Musk had been expected to lay out a plan to make a more-affordable electric vehicle (EV) that would broaden his brand’s appeal and fend off competition.

Executives said Tesla’s next generation platform would include more than one vehicle built in standardized factories, but Musk brushed off questions about models in mind.

Tesla’s chief financial officer, Zach Kirkhorn, and others underscored their dedication to cutting production costs.

Kirkhorn estimated Tesla must invest six times more than it has to date to hit its long-term target of increasing output to 20 million vehicles annually by 2030, a 10-fold increase from current capacity. The bill could be $175 billion, he said.

The next investment step will be a new Tesla factory in northern Mexico, Musk said, announcing the first plant outside of the United States, Germany and China.

Musk did not comment on plans to revamp the Model Y sedan next year, called Project Juniper that Reuters flagged in a report on Wednesday, or a revamped version of its Model 3 sedan – a project codenamed Highland which Reuters has reported will go into production in September.

Design chief Franz von Holzhausen said the Cybertruck pickup is coming this year.

MASS MARKET

Capturing the mass market is critical to Tesla’s annual production goal, which is more than the combined production of the two largest volume vehicle makers – Germany’s Volkswagen (ETR:VOWG_p) and Japan’s Toyota.

It would also represent a sales volume for Tesla alone of about a quarter of last year’s total global car sales.

Musk said the key to driving Tesla’s sales volume would be bringing prices down for consumers, adding that Tesla’s discounts offered this year had stoked demand.

“The desire for people to own a Tesla is extremely high. The limiting factor is their ability to pay for a Tesla,” Musk said.

Tesla is the most valuable automaker, but its stock has swung wildly. Shares are down about half from their November 2021 peak, but have rebounded more than 60% this year.

Musk said Tesla could need as few as 10 models, which at target production would amount 2 million sales per year for each model line. By comparison, Toyota sells just over 1 million Corollas a year globally.

Tesla already has a lead over its rivals in manufacturing EVs at a profit. Chief Engineer Lars Moravy said the company expects to build its next-generation vehicles for half the cost of the current Model 3 or Model Y.

Moravy described a production process for future EVs he called an “unboxed” model of snapping together sub-assemblies to reduce complexity and time in production.

Tesla executive Peter Bannon gave an example of how the company uses data to cut costs. Customer data showed Tesla owners did not use the sun roof, he said, “so we removed it.”

High-profile Tesla investor Ross Gerber tweeted that the presentation amounted to a “Huge tease” on the next-generation vehicle. “It’s coming. They laid it all out. 50% less cost to build. Would get you a $25-$30k EV!”

Tesla has outperformed the industry in recent years, increasing deliveries rapidly despite the pandemic and supply-chain disruptions.

But Tesla cut prices in recent months to boost sales, which were pressured by a weak economy and growing threats from rivals in the United States and China.

Tesla will also have to improve its battery technology, which Musk has called the “fundamental limiting factor” for the transition to sustainable energy and more affordable cars.

Tesla has been struggling to scale up the production of advanced batteries, called 4680s. Executives on Wednesday said it was likely they could hit volume production this year, but added they were still testing two different production processes.