Hyperdrive
Tesla Sinks as Musk Warns of More Blows to Profitability
- Carmaker missed on margins while beating earnings estimates
- The company is pouring money into AI, new Cybertruck
This article is for subscribers only.
Tesla Inc. shares fell after the carmaker warned of more hits to its already-shrinking profitability.
Chief Executive Officer Elon Musk said Tesla will have to keep lowering the prices of its electric vehicles if interest rates continue to rise. Months of markdowns have already taken a toll on automotive gross margin, which fell to a four-year low in the second quarter.