Elon Musk could conduct Tesla price cuts, again. The billionaire confirmed this plan after the EV maker shared its profit margins report.
Elon Musk Could Conduct Tesla Price Cuts Again
According to BBC News' latest report, Elon Musk said that the world economy is currently in "turbulent times." Because of this, the billionaire considers more Tesla price cuts.
Previously, the giant automaker also reduced its EV prices in major markets, such as China and the United States.
Based on Tesla's profit margins report, its gross profit margin decreased to 18.2% during the past three months to the end of June.
This is a massive drop considering that its profit margin was 26.2% during the same months in 2022.
The potential EV price reductions are expected to help Tesla gain its profit margin loss.
Elon Don't Know Why Economy is Struggling
Business Insider reported that the billionaire has no idea what's going on with the economy.
"One day, it seems like the world economy is falling apart, the next day, it's fine. I don't know what the hell is going on," said the tech executive.
The billionaire stated this statement during the 2nd-quarter earnings call with analysts on Wednesday, July 19.
Musk jokingly said that he needs a crystal ball to know what's happening with the global economy.
"I'd really appreciate it if I could borrow that crystal ball," said the billionaire.
Musk explained that purchasing a new car is a big decision for many consumers across the globe.
He added that since it is a big deal, people will commonly pause on buying new vehicles whenever there's economic uncertainty.
Musk said that since the global economy is in a negative and uncertain state, they need to do something about it.
This is why the billionaire is considering cutting the prices of its Tesla EVs. He explained that sacrificing margins to sell more EVs is a reasonable thing to do during turbulent times.
Threats to Tesla
Although reducing the prices of Tesla EVs is a practical thing to do, Elon still needs to think carefully before making any business action.
The Observer recently reported that some analysts and investors consider Musk's decision-making as one of the top threats to Tesla's business.
Some of them even stated that the billionaire could be distracted by Twitter's status, which is one of his decisions that are negatively impacting Tesla.
If you want to learn more details as to why Musk's decision-making concerns them, you can click this link.
