Hyperdrive
Tesla Is Still Struggling to Lure Buyers After Price Cuts. That's an Ominous Sign for the Economy
- Results from Ally, AutoNation, Lithia, Autoliv add to concerns
- Auto demand, pricing offer indications of consumer weakness
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Thinning profits at Tesla Inc. and signs of broader weakness in the US auto industry are sending ominous signals for the US economic outlook.
In recent months, Elon Musk’s electric-vehicle maker has repeatedly cut prices to lure reluctant buyers. Auto-lending giant Ally Financial Inc.’s first-quarter profit took a hit as it made fewer loans and set aside money for defaults, and dealers AutoNation Inc. and Lithia Motors Inc. sold fewer cars, trucks and SUVs. What’s more, auto loan delinquencies are rising.