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Musk Pledges Belt-Tightening as Tesla Cuts Prices, Warns of Loss

  • Shift to online-only orders reduces prices about 6% on average
  • Stock drops as CEO says first-quarter profit improbable
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Here’s Everything That Just Happened at Tesla
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Elon Musk is delivering on one big promise -- a $35,000 Model 3 -- while falling short on another: that Tesla Inc.’s days of losing money are over.

Tesla probably won’t post a profit in the first quarter, the chief executive officer told reporters Thursday, contradicting several of his past predictions that the company would earn money from now on. He made the comments while announcing the long-awaited cheaper Model 3, along with a plan to trim costs by closing stores and cutting more jobs.