Tesla CEO Elon Musk signaled on Wednesday that he would cut prices again on electric vehicles in "turbulent times," even as his all-out price war on automaker rivals squeezes the company's own margins.
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00:00 Tesla CEO Elon Musk signaled on Wednesday that he would slash prices again on the company's
00:07 vehicles.
00:08 On an earnings call with analysts, Musk said, "One day it seems like the world economy
00:12 is falling apart.
00:14 Next day it's fine.
00:15 I don't know what the hell is going on.
00:17 We're in, I would call it, turbulent times."
00:21 Tesla shares fell nearly 5 percent after the call.
00:24 To price out competitors in the U.S., China and other key markets, Tesla has slashed prices
00:29 several times since late last year, by as much as a quarter on some of its models.
00:34 Though the cuts have squeezed the company's gross margins, a closely watched indicator
00:38 in the industry, on the same call, Musk doubled down on his earlier assertion that Tesla would
00:44 sacrifice margins to boost vehicle production.
00:47 The company did complete a record 466,000 vehicle deliveries globally between April
00:53 and July, but Tesla's quarterly gross margin during that same period, regulatory credits
00:58 aside, fell to around 18 percent according to Reuters calculations.
01:04 That's a far cry from the 26 percent it reported for the same period in 2022, and the lowest
01:09 for Tesla in four years.
01:12 In a statement, Tesla reiterated its plan to deliver 1.8 million vehicles this year,
01:18 but acknowledged that production would drop in the third quarter due to factory upgrades.
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