Tesla chief executive Elon Musk said the electric carmaker could continue to cut prices as the world economy is in "turbulent times". The multi-billionaire's comments came after the company reported that its profit margins had been squeezed as it faced tough competition. In recent months, Tesla has cut its prices several times in major markets, including the US and China. Tesla reported that its profit margin had fallen to the lowest level in four years. Tesla CEO Elon Musk said the electric car maker could continue to cut costs as the global economy is in "times of turmoil". The news of the multibillionaires came as the company announced it had cut its profit margins as it faced stiffer competition. 2 TSLA -8.08% Annabelle Liang - Business Journalist Thu, Jul 20, 2023, at 12:18 am CDT 2 minutes read In this article: TSLA -8.08% Tesla CEO Elon Musk gets into a Tesla car as he leaves a hotel in Beijing, China. Tesla CEO Elon Musk gets into a Tesla car as he leaves a hotel in Beijing, China. Tesla CEO Elon Musk said the electric car maker may continue to cut prices as the global economy is in "times of turmoil".
The news of the multibillionaires came as the company announced it had cut its profit margins as it faced stiffer competition. In recent months, Tesla has repeatedly lowered prices in major markets, including the United States and China. Shares of the company fell more than 4% in after-hours trading in New York. Tesla said its profit margin fell to the lowest level in four years. The company said its profit margin fell to 18.2% for the three months to the end of June, from 26.2% for the same period last year. In a call with Wall Street analysts, Musk indicated that he is ready to cut prices again if necessary. "One day it seems like the world economy is crashing, the next day everything is fine. I don't know what's going on," he said. "We are in, I would say, turbulent times," added Musk. Investors are worried about the possibility of a price cut in Tesla, Arun Sundararajan, a professor at NYU Stern Business School, told the BBC. "It looks like a price war without a long-term plan to increase margins if Tesla wins the war," he added. Last year, Mr. Musk said he believes chasing high sales, with low profits, is the "right step" for Tesla. The company has lowered its prices in markets such as the United States, the United Kingdom, and China to compete with manufacturers. Earlier this month, the company said it had delivered the number of cars in the three months to the end of June. This comes as many motorists have agreed to adopt Tesla's electric vehicle (EV) charging technology. On Wednesday, the Japanese car giant Nissan said that its electric cars in the United States and Canada will have Tesla-produced power stations by 2025. Nissan Americas president Jérémie Papin said the company is committed to "making electric mobility more accessible". The announcement follows moves by US automakers Ford and General Motors.
Mr. Musk signalled that he was open to cutting prices further if needed. "One day it seems like the world economy is falling apart, the next day it's fine. I don't know what the hell is going on," he said. "We're in, I would call it, turbulent times," Mr. Musk added. Investors are concerned about the possibility of more price cuts at Tesla, Arun Sundararajan, a Professor at the NYU Stern Business School, told the BBC. "This feels like a price war with no long-term strategy to raise margins if Tesla wins the war," he added. Nissan Americas' chairperson Jérémie Papin said the firm was committed "to making electric mobility even more accessible".
