- Elon Musk hints at possible further price reductions for Tesla vehicles
- Tesla’s profit margin drops to lowest level in four years due to intense competition
- Other automakers adopting Tesla’s charging technology for their electric vehicles
Elon Musk as the global economy experiences “turbulent times.”
The multibillionaire’s remarks followed the company’s announcement that its profit margins had shrunk due to intense competition.
In recent months, Tesla has reduced its prices in key markets, including the United States and China.
In New York after-hours trading, the company’s stock declined by more than 4%.
Tesla’s profit margin fell to its lowest level in four years, as reported by the company.
For the three months ending in June, the company’s gross profit margin decreased to 18.2% from 26.2% for the same period last year.
During a call with Wall Street analysts, Mr. Musk indicated he would be willing to reduce prices further if necessary.
“One day it appears that the global economy is collapsing, and the next day everything is perfect. He stated, “I have no idea what the hell is going on.”
Mr. Musk added, “I’d say we’re experiencing turbulent times.”
Arun Sundararajan, a professor at NYU Stern Business School, told that investors are worried about the possibility of additional price reductions at Tesla.
“This appears to be a price war with no long-term plan to increase margins if Tesla prevails,” he added.
Mr. Musk stated earlier this year that he believed pursuing higher sales at the expense of profits was the “right choice” for Tesla.
To compete with other manufacturers, the company has lowered prices in markets including the United States, the United Kingdom, and China.
The company announced earlier this month that it delivered a record number of vehicles in the three months leading up to the end of June.
It follows the adoption of Tesla’s electric vehicle (EV) charging technology by more automakers.
Nissan stated on Wednesday that its US and Canadian electric vehicles would use Tesla-developed charging connectors in 2025.
Jérémie Papin, chairman of Nissan Americas, stated that the company was committed to “making electric mobility more accessible.”
The announcement follows identical moves by Ford and General Motors, both American automakers.
