TLDR:
- The economy experiences turmoil with COVID-19, inflation, and recession fears.
- Elon Musk expresses frustration over the unpredictable nature of the global economy.
- Tesla slashes EV prices to cope with economic uncertainty and competition.
- Tesla reports record revenue but faces share price drop in after-hours trading.
- Musk remains hopeful, willing to make sacrifices to boost vehicle sales.
The economy has been on a wild ride these past three years, with various factors affecting it, from the COVID-19 pandemic to inflation and recession fears. Even Elon Musk, the CEO of Tesla, seems exasperated with the situation, saying,
“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.”
Tesla’s investor relations department has acknowledged that the “challenges of these uncertain times are not over.”
To keep up with the competition and the economy, Tesla has repeatedly slashed prices for its electric vehicles this year.
“Buying a new car is a big decision for the vast majority of people, so any time there’s economic uncertainty, people generally pause on new-car buying at least to see what happens,” Musk said.
Tesla reported an all-time high revenue of $24.93 billion on Wednesday, beating the $24.47 billion analysts had forecast.
Earnings per share came in at 91 cents adjusted, beating the 82 cents analysts had expected. However, Tesla’s share prices fell 4.2% to $279.07 apiece in after-hours trade.
Despite the challenges of these uncertain times, Musk remains optimistic and believes it makes sense to sacrifice margins in favor of making more vehicles.
He said during the call, “I think it does make sense to cut prices again if it helps boost sales.”
