Tesla Discounts Hurt Margins

Tesla reported its earnings with a record for quarterly revenue, but it experienced lower margins due to price cuts and incentives. The stock price initially remained flat but dropped during the earnings call as CEO Elon Musk and other executives failed to provide precise specs and delivery dates for the Cybertruck and a robotaxi-ready vehicle. Tesla reported higher-than-expected vehicle deliveries driven by incentives and discounts, resulting in the lowest operating and gross margins for at least the last five quarters. Musk announced plans to spend over $1 billion on Dojo, a supercomputer developed for AI machine learning and computer vision training. He also reaffirmed his commitment to achieving full self-driving capability, asserting that Tesla would surpass human drivers' abilities by the year's end, but this long-standing promise remains unfulfilled.