{"id":47815,"date":"2023-04-20T09:03:14","date_gmt":"2023-04-20T13:03:14","guid":{"rendered":"https:\/\/autosector.com\/?p=47815"},"modified":"2023-04-20T09:03:14","modified_gmt":"2023-04-20T13:03:14","slug":"tesla-stock-slides-8-as-elon-musk-s-price-cuts-eat-into-quarterly-profits","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=47815","title":{"rendered":"Tesla stock slides 8% as price cuts eat into quarterly profits"},"content":{"rendered":"<figure><figcaption>\n  <a class=\"injectedLinkmain\" href=\"https:\/\/www.autoblog.com\/tesla\/\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:0;\">Tesla<\/a> shares fell in Thursday&#8217;s premarket with<br \/>\n  <a class=\"injectedLinkmain\" href=\"https:\/\/www.autoblog.com\/tag\/elon+musk\/\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:1;\">Elon Musk&#8217;s<\/a> price cuts eating away at the EV maker&#8217;s profit margins.<br \/>\n  <span class=\"copyright\">Aly Song\/Reuters<\/span><br \/>\n <\/figcaption><\/figure>\n<ul class=\"summary-list\">\n<li>Tesla stock fell 8% in premarket trading on Thursday after its earnings disappointed Wall Street.<\/li>\n<li>The EV maker met analysts&#8217; first-quarter revenue targets but reported slimmer profit margins.<\/li>\n<li>Elon Musk has slashed the prices of Tesla&#8217;s flagship vehicles in a bid to gain market share.<\/li>\n<\/ul>\n<p><a href=\"https:\/\/markets.businessinsider.com\/stocks\/tsla-stock?utm_medium=referral&amp;utm_source=yahoo.com\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:2;\">Tesla<\/a> stock slid in premarket trading on Thursday after the electric-vehicle maker revealed its aggressive price cuts eroded its profit margins last quarter.<\/p>\n<p>Shares fell 8% to trade at just under $167 ahead of the opening bell, after Tesla&#8217;s <a href=\"https:\/\/ir.tesla.com\/press-release\/tesla-vehicle-production-deliveries-and-date-financial-results-webcast-first-quarter-2023\" target=\"_blank\" rel=\"noopener noreferrer\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:3;\">first-quarter earnings<\/a> fell short of Wall Street&#8217;s expectations.<\/p>\n<p>The automaker posted earnings per share of $0.85 and revenue of $23.33 billion, both of which were roughly in line with analysts&#8217; estimates, according to Refinitiv.<\/p>\n<p>But its net income plummeted 24% year-on-year to $2.51 billion during the three months ending March 31.<\/p>\n<p>Tesla&#8217;s margins have shrunk in part because it aggressively cut the price of top-selling cars including the <a class=\"injectedLinkmain\" href=\"https:\/\/www.autoblog.com\/tesla\/model+3\/\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:4;\">Model 3<\/a> and <a class=\"injectedLinkmain\" href=\"https:\/\/www.autoblog.com\/tesla\/model+y\/\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:5;\">Model Y<\/a> last quarter, in a bid to boost its market share.<\/p>\n<p>CEO Elon Musk signaled Wednesday that he doesn&#8217;t expect the EV maker to stop cheapening its flagship vehicles anytime soon.<\/p>\n<p>&#8220;This is a good time to increase our lead further, and we&#8217;ll continue to invest in growth as fast as possible,&#8221; he said of the price cuts in a call with analysts after the closing bell.<\/p>\n<p>Musk&#8217;s price war could boost Tesla&#8217;s long-term market share \u2013 but it&#8217;s unlikely to play well on Wall Street if the cuts eat further into its profits, analysts say.<\/p>\n<p>&#8220;Market share or margins, that seems to be the conundrum facing <a class=\"injectedLinkmain\" href=\"https:\/\/www.autoblog.com\/electric\/\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:6;\">electric vehicle<\/a> powerhouse Tesla,&#8221; AJ Bell investment director Russ Mould said Thursday.<\/p>\n<p>&#8220;Right now, it looks like the company&#8217;s competitive position is being prioritized over protecting profitability and only time will tell if that is the right move,&#8221; he added.<\/p>\n<p><strong><em>Read more:<\/em><\/strong> <a href=\"https:\/\/www.businessinsider.com\/tesla-ev-price-war-creating-headache-entire-auto-industry-2023-4?utm_medium=referral&amp;utm_source=yahoo.com\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:7;\"><em>Teslas are cheaper than ever and it&#8217;s creating a headache for the entire auto industry<\/em><\/a><\/p>\n<div class=\"read-original\">\n  Read the original article on<br \/>\n <a href=\"https:\/\/www.businessinsider.com\/tesla-stock-elon-musk-price-cuts-market-news-model-y-2023-4\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:8;\">Business Insider<\/a>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Tesla shares fell in Thursday&#8217;s premarket with Elon Musk&#8217;s price cuts eating away at the EV maker&#8217;s profit margins. Aly Song\/Reuters Tesla stock fell 8% in premarket trading on Thursday after its earnings disappointed Wall Street. The EV maker met analysts&#8217; first-quarter revenue targets but reported slimmer profit margins. Elon Musk has slashed the prices [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":8313,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[2],"tags":[],"class_list":["post-47815","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry"],"_links":{"self":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/47815","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=47815"}],"version-history":[{"count":0,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/47815\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/media\/8313"}],"wp:attachment":[{"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=47815"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=47815"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=47815"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}