Tesla Inc missed market estimates for first-quarter margin on Wednesday, throttled by a series of aggressive price cuts meant to spur demand in a sagging economy and fend off rising competition.
Finance chief Zachary Kirkhorn promised in January that Tesla would not go below margins of 20% and an average selling price of $47,000 across models.
Tesla on Wednesday reiterated that it expects to achieve deliveries of around 1.8 million vehicles this year. The EV maker has previously said that logistics issues have caused it to deliver far fewer cars than it makes. In the first quarter, it delivered about 18,000 fewer cars than it made. The company reported first-quarter revenue of $23.33 billion, compared with consensus estimate of $23.21 billion, according to 22 analysts polled by Refinitiv."We also suspect Tesla's decision to consistently cut prices will prove a headache to competitors," Canaccord Genuity analyst George Gianarikas said in a broker note ahead of earnings.
Tesla's sixth price cut on Tuesday, ahead of results, knocked down its shares and those of its EV rivals Lucid
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