*TESLA SHARES DIVE NEARLY 10% AS MUSK SIGNALS MORE PRICE CUTS $TSLA
At $517 billion, Tesla's market capitalization ended Thursday below Meta Platforms' for the first time since 2021.
"Tesla’s room to lower prices is not just limited to shrinking its superior margins; the EV maker seems conceptually ready to give away its hardware in the near-term in hopes of richly monetizing its software in a more distant future," Deutsche analyst Emmanuel Rosner wrote in a client note. Tesla's automotive gross margin, excluding regulatory credits and leasing, stood at 18.3%, missing an 'above 20%' target provided in January by Tesla CFO Zachary Kirkhorn.
"We've taken a view that pushing for higher volumes and a larger fleet is the right choice here versus a lower volume and a higher margin," Musk said.
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