Tesla missed market estimates for first-quarter total gross margin after cutting prices in the U.S. and globally.
Tesla reported total gross margin of 19 percent, compared with expectations of 22 percent, according to analysts polled by Refinitiv data cited by Reuters. The EV maker’s net income during the latest period dropped 24 percent to $2.5 billion.
Tesla reported global deliveries of 422,875 in the first quarter, a 4.3 percent increase compared with the previous quarter. The small quarter-on-quarter growth suggests price cuts were necessary to maintain momentum amid rising EV competition and higher interest rates.
The EV maker likely sold 161,630 vehicles in the U.S. in the January-March period, according to an estimate from Cox Automotive, for a 25 percent increase compared with a year earlier. Tesla doesn’t break out U.S. sales.
Read Article