Tesla cuts prices again in turbulent times, margins under pressure
from David Wurm 
on July 20, 2023, 12:00 pm | Write a comment
Tesla announced that it would lower the prices for the vehicles again. The move comes despite price wars with other automakers, which are weighing on the company's own margins. Tesla has cut prices several times in the US, China and other markets since late last year.
In a nutshell: Tesla CEO Elon Musk signaled on Wednesday that he would cut EV prices again, and in "turbulent times." At the same time, the company is fighting automobile manufacturers with its price war and is feeling the pressure on its own margins Reuters reported.
- Tesla is cutting prices as a stimulus to deal with competition and economic uncertainty
- Focus on cost reduction and development of new ones Proproducts despite low margins
- progress in the ProProduction of the Cybertruck and negotiations about the licensing of "Full Self Driving" (FSD) software
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Price reductions are intended to create incentives
Since the end of last year, Tesla has repeatedly cut prices in the U.S., China and other markets and increased rebates and other incentives to cushion competition and economic uncertainty. Musk said at an analysts' conference: "One day the global economy seems to fall apart, the next day everything is fine. I don't know what the hell is going on. We are in turbulent times.”
challenges and achievements
Image: Courtesy of Tesla, Inc.
Tesla reported a total gross margin of 18,2% in the April-June period, its lowest in 16 quarters. The company stressed that it is focused on reducing costs and developing new ones Proproducts and that the challenges of these uncertain times are not over yet. Though the sharp price cuts weighed on Tesla's auto gross profit, Musk reiterated that Tesla would sacrifice margins for higher sales.
Focus on cost reduction and new Produkes
Tesla reiterated its expectations of delivering around 1,8 million vehicles this year, but announced that the ProProduction will decline slightly in the third quarter due to planned shutdowns for plant expansion. Lower prices and government tax breaks for electric vehicle purchases led to record global sales of 466.000 vehicles in the April-July period. However, these developments came at the expense of profitability.
progress in the Proproduction and delivery
Tesla announced that the ProProduction of the long-awaited Cybertruck electric pickup truck remains on schedule for first deliveries this year. Musk also mentioned that Tesla is negotiating with a major OEM to license its software for Full Self Driving (FSD). Tesla had previously stated that it was open to licensing the driver assistance system.
