Hyperdrive
Tesla Sinks as Musk Eyes More Price Cuts Despite Margin Squeeze
- Pushing for higher volume is ‘the right choice,’ Musk says
- Shares drop by more than 10%, biggest slide since Jan. 3
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Tesla Inc. shares slid the most in more than three months after Elon Musk indicated his company will keep cutting prices to stoke demand even after markdowns early this year took a significant toll on profitability.
Tesla’s operating margin shrank to 11.4% in the first quarter, a roughly two-year low, after the company marked down its electric vehicles in January and March. Musk has done several more rounds of price cuts already this month and said he’s comfortable making less money on each car sold.