Transportation
Volvo’s Electric-Car Margins Drop as Tesla Ups Pricing Pressure
- Carmaker bought key battery raw material at peak levels
- Company sees EV returns improving as new models coming out
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Volvo Car AB fell the most in three months after high lithium costs dragged down its electric-vehicle returns during the second quarter and broader pricing concerns sparked by industry leader Tesla Inc.
The manufacturer expects returns to improve in the coming months because of lower raw-material expenses and new models. Tesla sparked further profitability worries after Elon Musk said late Wednesday the biggest EV seller probably will keep lowering the prices of its cars if interest rates continue to climb.