The stock was trading at $167, with at least 15 analysts lowering their price targets on Tesla. The firm was set to lose $50 billion in market value.
Tesla’s gross margins fell to a more than two-year low in the first quarter and missed market estimates, after the company kicked off a price war in January to defend its dominance in the US and make inroads in China, its second-largest market.
“Long-term we believe this is the right strategy and leverages their cost leadership position. However, this does not come without pain as we now believe margins will get worse before they get better,” RBC analyst Tom Narayan said. “It’s better to shift a large number of cars at lower margin and harvest that margin in the future as we perfect autonomy,” Musk told analysts on a conference call. He said although the economy remained uncertain, the EV maker’s orders exceeded production.
Tesla said in a statement it still believed its operating margin would remain the highest among big carmakers.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
With Tesla stock and margins under pressure, Elon Musk falls back on his favorite fantasyTesla CEO Elon Musk relied on his favorite fantasy --- full autonomy is almost here! --- to combat legitimate margin concerns, and shares fell even more.
Leer más »
U.S. stock futures drop after Elon Musk suggests Tesla may sacrifice marginsSentiment was hit by a sharp slide in Tesla stock after Elon Musk suggested he was prepared to boost market share at the expense of profit margins.
Leer más »
Elon Musk's whacky merch, from Starship Torch to 'S3XY' Tesla shortsTake a look at Elon Musk's weird and whacky merchandise, from rocket-shaped torches and flamethrowers to 'S3XY' Tesla shorts
Leer más »
Tesla Shanghai workers criticized Elon Musk online over bonus cuts, even complained to his mom - AutoblogReuters reported that performance bonuses at the Chinese facility were cut over the weekend. There was a fatal accident at the plant in recent weeks.
Leer más »
Elon Musk May Have Been Right, His Tesla Model Y Guess Could Come TrueTesla's Elon Musk predicted that the Model Y would become the best-selling car in the world. Of course, people said he was crazy, but it may happen this year.
Leer más »
Elon Musk announces Tesla Cybertruck delivery event in third quarter of 2023Tesla will hold a delivery event for the Cybertruck in the third quarter of 2023, Elon Musk said in an earnings call. The polarizing electric truck is expected to start production in summer 2023.
Leer más »