Tesla boss Elon Musk has recently reduced prices significantly. This puts a noticeable strain on the company’s margin.
(Photo: IMAGO/USA TODAY Network)
new York The price war declared by Tesla boss Elon Musk is having an effect: the electric car manufacturer’s sales increased by 24 percent to $23.3 billion in the first quarter of 2023. With 422,875 deliveries, the company achieved record sales. But the margin has dropped significantly, as Tesla announced on Wednesday evening. Net income fell 24 percent year-on-year to $2.5 billion. So Tesla delivered more vehicles, but earned less because of the discounts.
The announced figures are below the expectations of the analysts. On average, they had expected even higher sales and deliveries. The stock fell by almost 6 percent in after-hours trading.
Musk had boosted sales with high discounts, and Tesla had lowered prices several times in the US alone. Profitability suffers as a result, even though Tesla still has high profit margins compared to other automakers.
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