Rebecca Elliott of The Wall Street Journal tells us price cuts didn’t hurt Telsa’s second Quarter profit growth as bad as some feared. She writes (abridged):
Tesla TSLA -3.96%decrease; red down pointing triangle price cuts didn’t hurt the electric-carmaker’s second-quarter profit growth as badly as some on Wall Street had feared.
Still, Chief Executive Elon Musk cautioned investors Wednesday that even more reductions might be required and that the company would scale back production this quarter as it updates its factories. He has already cut starting prices in the U.S. between 14% and 28% this year, depending on the model.
Shares fell more than 4% in after-hours trading.
“We just don’t control the macro conditions,” Musk told analysts. “If macro conditions are stable, I think prices will be stable. And if they’re not stable, then we would have to lower prices.”
The automaker on Wednesday reported income rose 20% to $2.7 billion in the second quarter, buoyed by cheaper materials that helped offset lower vehicle prices. The result beat analysts’ predictions for a slight profit gain from a year earlier.
Read the full article here.
