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Tesla profits climb despite price cuts | CNN Business

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Tesla reported a much bigger than expected increase in profits, despite a series of price cuts that trimmed the amount of revenue per vehicle sold

Tesla\n \n reported adjusted earnings of $3.1 billion, or 91 cents a share, up 20% from the second quarter last year. Analysts surveyed by Refinitiv had forecast earnings of 82 cents a share. Its profit margin of 18.2% was also better than expected, although profit margins were still smaller than they were last year due to the series of price cuts the company announced since earlier this year. A year ago, Tesla’s margin was 25%, and even reported a 19.

“So we’re not trying to keep this to ourselves. We’re more than happy to license it to others,” Musk said, without giving any details about its use. Virtually all major automakers are introducing driver assist options, such as technology to keep cars at a safe distance from the cars in front of it them and automatic breaking to avoid obstacles.

 

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