Tesla’s ever-changing prices have puzzled analysts and investors alike in recent months, with many wondering how deep are the company’s profit margins.
While that’s something only Tesla insiders know, it appears that the EV maker wouldn’t mind going further than just reducing margins via price cuts. On the company’s Q1 2023 earnings call on April 19, CEO Elon Musk said Tesla is willing to sacrifice profit for higher volumes in the short term, reiterating the carmaker’s commitment to price cuts.
“We’ve taken the view that pushing for higher volumes and a larger fleet is the right choice here versus a lower volume and higher margin,” Musk said, according to Automotive News.
Investors and analysts asked Musk more than half dozen questions about Tesla’s price cuts after the company slashed prices six times this year alone. According to Insider, one of the questions prompted Musk to make a stunning admission.
He said Tesla could technically even sell its products for “zero profit” and that the company could instead make money in the future through its autonomous software.
“Tesla is in a uniquely strong strategic position because we’re the only ones making cars that technically we could sell for zero profit for now and then yield actually tremendous economics in the future through autonomy. No one else can do that. Not sure how many of you will appreciate the profundity of what I’ve just said, but it is extremely significant.”
22 Photos
He added that Tesla expects its vehicles will be able to “generate significant profit through autonomy” over time, noting that it’s “better to ship a large number of cars at a lower margin and subsequently harvest that margin in the future as we perfect autonomy.”
That said, he reassured investors that Tesla’s margins remain among the healthiest in the industry, even after multiple rounds of price cuts this year for the entire passenger car lineup.
Tesla missed first-quarter forecasts for total gross margin – 19 percent compared with an expectation of 22 percent from analysts – while net income dropped 24 percent to $2.5 billion compared to the previous quarter, despite a record number of deliveries in the first quarter – 422,875.
Musk also said on the call that Tesla’s global production should reach between 1.8 million and 2 million this year, compared to 1.4 million in 2022.
While price cuts may be good for boosting volume, some analysts say they could hurt the brand over time as maintaining brand prestige while simultaneously attempting to grow volume is a tough balancing act in the long term.
oral lasuna – order himcolin generic himcolin without prescription
besifloxacin price – buy besifloxacin without prescription purchase sildamax without prescription
neurontin pills – azulfidine 500 mg us azulfidine 500 mg over the counter
buy benemid generic – buy generic probenecid carbamazepine 400mg over the counter
mebeverine sale – order etoricoxib 60mg pills pletal 100 mg generic
order diclofenac 100mg generic – buy aspirin 75mg for sale aspirin sale
rumalaya pills – purchase shallaki order amitriptyline 50mg generic
buy mestinon 60 mg sale – buy imuran generic buy azathioprine pill
buy voveran pill – buy nimodipine tablets purchase nimodipine online cheap
brand meloxicam – mobic cost toradol cheap
order cefdinir for sale – clindamycin oral
buy accutane 40mg for sale – order accutane without prescription order deltasone 5mg without prescription
order generic prednisone 10mg – order permethrin generic zovirax medication
purchase acticin – order benzac without prescription order retin gel generic
buy metronidazole – buy cenforce pills for sale cenforce 50mg without prescription
buy cheap generic augmentin – buy synthroid 100mcg online cheap cheap synthroid sale
purchase cleocin sale – cleocin 300mg price indocin order online
losartan for sale – cozaar price where to buy keflex without a prescription
crotamiton order – how to buy eurax aczone cost
order generic provigil 200mg – buy melatonin generic meloset without prescription
bupropion uk – order bupropion 150 mg without prescription purchase shuddha guggulu pills
buy xeloda 500mg for sale – buy generic danocrine buy danazol 100mg generic
order prometrium 200mg without prescription – buy clomiphene pills clomiphene online buy
order alendronate 70mg for sale – alendronate online order medroxyprogesterone without prescription
order norethindrone 5 mg generic – order yasmin pill yasmin online order
estrace brand – order anastrozole 1mg generic buy anastrozole 1mg without prescription
гѓ—гѓ¬гѓ‰гѓ‹гѓі еЂ‹дєєијёе…Ґ гЃЉгЃ™гЃ™г‚Ѓ – г‚ўгѓўг‚г‚·г‚·гѓЄгѓі е‰ЇдЅњз”Ё г‚ёг‚№гѓгѓћгѓѓг‚ЇгЃ®йЈІгЃїж–№гЃЁеЉ№жћњ
バイアグラ еЂ‹дєєијёе…Ґ гЃЉгЃ™гЃ™г‚Ѓ – г‚·г‚ўгѓЄг‚№ гЃ®иіје…Ґ г‚їгѓЂгѓ©гѓ•г‚Јгѓ« еЂ‹дєєијёе…Ґ гЃЉгЃ™гЃ™г‚Ѓ