Elon Musk, CEO of Tesla Inc, said on Wednesday that the company expects to miss its vehicle delivery targets this year, but he downplayed concerns about softening demand after the company’s revenue missed Wall Street estimates.

On a conference call with analysts, the billionaire said there was excellent demand for the fourth quarter, addressing investor concerns that the weak global economy and high Tesla vehicle prices would discourage buyers.

However, he predicted that some logistics challenges would persist, with fourth-quarter deliveries falling short of 50% growth while production increased by 50%.