Tesla stock slides on fresh Model 3, Model Y price cuts ahead of Q3 earnings

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Tesla, which has vowed to put winning market share ahead of profits, unveiled another round of U.S. price cuts for its flagship models.

shares moved lower in pre-market trading after the carmaker unveiled another round of price cuts following a weaker-than-expected tally for third quarter deliveries.

The move comes amid a concerted, and publicly-stated effort from founder and CEO Elon Musk to sacrifice profitability over gaining market share in the highly-competitive EV market. The cuts have taken their toll on Tesla's profit margins, however, which were pegged at 18.7% for the three months ending in June, down from the year-earlier tally of 22.4%.

"A sequential decline in volumes was caused by planned downtimes for factory upgrades, as discussed on the most recent earnings call. Our 2023 volume target of around 1.8 million vehicles remains unchanged," Tesla said in a statement.Tesla shares were marked 1.3% lower in pre-market trading to indicate an opening bell price of $256.66 each a move that would still leave the stock up more than 38% over the past six months.

 

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