Tesla is a victim of a price war it started | CNN Business

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Tesla helped kick off an EV price war. Now, those lower prices are hitting the company’s sales and profits.

Tesla, which has cut prices on its electric vehicles four times in the quarter and twice so far this month, earned $2.9 billion excluding special items, down 22% from a year ago. Profits fell even more compared to the third and fourth quarters of last year. The lower prices caused revenue to fall $1.3 billion compared to the fourth quarter despite record deliveries, leading to tighter profit margins. Tesla reported a gross profit margin of 19.3%.

Some, including Ford\n \n , have followed by cutting the price of the Mustang Mach-E, one of its key EVs. Others, such as General Motors, have announced plans for EV models that will be less expensive than the cheapest Tesla model. But Tesla is also facing headwinds from broader economic conditions, said CEO Elon Musk on a call with investors. “It is worth pointing out that the current macro environment remains uncertain,” he said.

 

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Nothing like antagonizing the base of people who actually buy your cars.

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Keep trying fake news

Everybody is bitch'in about the high price of EV's, so what does he do he meets the markets anger and lowers Prices.

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Here are the numbers, don’t let CNN fool you

Why are you not covering the fact that Toyota and other manufacturers are reducing electric cars due to the fact that INFRASTRUCTURE is not ready? Why not? DIdn't you all lie about the fake infrastructure bill?

Don't worry, our electric bills will be going up to offset.

cnn, losing money like there's no tomorrow, but commenting on tesla's business strategy. gold

And who would want one now?

Look at it this way. At least Tesla have a product that people want to buy.

How do lower prices hurt sales? Please?

He'll have to make them go VROOM , VROOM, before rednecks will by one.

African n south American children are forced to do lithium mining for this . They die n no one cares about it n it's not even eco friendly. Nature will balance in a cruel way. Humans can't escape the WRATH of nature. We are too selfish 😂.

hahahahahahaha, the CNN liars doing anti elonmusk propaganda)) Pathetic effort.

I don't see how their sales were hit and even for CNN it should be simple math that it will 'hurt' their profits during these market conditions

Always looking for ways to increase their sales

I want an electric Porsche with a stick shift. Yes, they exist. 🍻

Imagine this. Only 1 company makes candy. Costs $1 to make. They charged $40 for it. Profit $39 Suddenly there are 50 candy makers making the same candy. The first company reduces their price to $15( which is still $7 more than what it should be) to stay in business.

CNN just a tool of The Democrat Party.. full of hate and vitrol

CNN invented a new economics law where lower prices lead to lower sales. Adam Smith got owned. Woke economics has arrived.

So CNN, instead of celebrating the fact the EV's that you lefties cherish so much are more affordable, you try and make elonmusk look bad? Or at least try and put a negative spin on what should be a positive story? Thank you, Mr. Musk for making your cars more affordable!

Their revenue actually gained from last year, just not profits. They sold more cars in Q1 then last year.

I think Tesla will deliver full self driving for US soon. Xpeng has AI based self driving in China.

BroClown goebbles elonmusk needs to give up propaganda for russia (which he really sucks at) and get back to managing his fancy car business.

Duh

No one is even close to Tesla. They beat all the other car manufacturers in sales combined last year. Stop with the hate CNN.

Can we stop with these cars already

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