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Elon Musk on Tesla car prices. Tesla’s boss’s statement alarmed investors, shares are getting cheaper

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Elon Musk, the world’s richest man and Tesla’s boss, said the electric car maker could continue to cut vehicle prices as the global economy finds itself in “turbulent times”. The billionaire’s statement alarmed investors. Tesla shares go down.

The billionaire’s announcement came after Tesla reported its second-quarter results, which showed margins had shrunk amid fierce competition. The BBC’s portal has pointed out that Tesla has recently cut prices several times in major markets, including USA and China.

Tesla shares fell about 4 percent. in property trading on the New York Stock Exchange.

Elon Musk on Tesla car prices

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The revenue of the electric car manufacturer Tesla in the second quarter of 2023 amounted to USD 24.93 billion, net profit increased by 20 percent. Every year. The operating margin was 9.6% at the end of the second quarter, the lowest level in the last five quarters. The decline in the margin is the result of Tesla’s reductions in the prices of electric cars.

The gross sales margin in the second quarter of 2023 was 18.2 percent, compared to 26.2 percent in the previous year. in the same period last year.

Elon Musk during a call with Wall Street analysts, he indicated he was open to further car price cuts if needed. – One day the world economy seems to be falling apart and the next it’s fine. I don’t know what the hell is going on,” the Tesla boss told the BBC.

“We are in turbulent times,” he added.

Arun Sundararajan, a professor at the NYU Stern School of Business in New York, indicated that investors are concerned about the possibility of further price cuts. “It seems like a price war without a long-term strategy to raise margins,” he added.

Previously, Tesla reported that in the second quarter of 2023 it delivered 466,140 electric cars and produced 479.7 thousand. aut.

Main photo source: EPA/PHILIP SINGER

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