“Tesla has cut the prices of its EVs repeatedly this year. Now investors are cutting the price of its shares.
“Shares of Tesla tumbled nearly 10% Thursday following its disappointing earnings report on Wednesday evening, as it reported that its profit margins fell below the 20% mark that analysts had been forecasting.
“The price cuts might have allowed it to increase sales volume, but revenue was down from fourth-quarter levels as a result, and which led to the squeeze on profits.
“The company announced its latest price cut, its sixth of the year, just earlier this week. CEO Elon Musk told investors on the call that the company was aiming to keep sales volume growing, even at the cost of formerly lofty profit margins.
““We’ve taken a view that pushing for higher volumes and a larger fleet is the right choice here versus a lower volume and higher margin,” said Musk.”
Read more at CNN
