Elon Musk: Tesla may slash costs again in ‘turbulent times’

The multibillionaire made his remarks after the company disclosed that profit margins had been squeezed due to fierce competition.

Tesla has reduced its prices in important regions such as the United States and China multiple times in recent months.

In New York after-hours trading, the company’s stock dropped by more than 4%.

Tesla announced that its profit margin has dropped to its lowest point in four years.

According to the corporation, its gross profit margin decreased to 18.2% in the three months ending in June, down from 26.2% in the same time last year.

During a conference call with Wall Street investors, Mr Musk indicated that he was willing to lower prices even further if necessary.

“One day it appears that the world economy is collapsing, the next day it appears to be fine.” “I have no idea what the hell is going on,” he admitted.

“We’re living in turbulent times,” Mr Musk added.

Investors are apprehensive about the likelihood of further price reduction at Tesla, according to Arun Sundararajan, a Professor at NYU Stern Business School.

“This feels like a price war with no long-term strategy to raise margins if Tesla wins the war,” he continued.

Mr Musk stated earlier this year that seeking bigger sales with lesser earnings was the “right choice” for Tesla.

To compete with competing manufacturers, the company has reduced pricing in markets such as the United States, the United Kingdom, and China.

The company announced earlier this month that it delivered a record number of automobiles in the three months ending in June.

It comes as more automakers have agreed to use Tesla’s EV charging system.

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