Tesla missed market estimates for first-quarter margin on Wednesday , throttled by a series of aggressive price cuts meant to spur demand in a sagging economy and fend off rising competition.
Analysts say, however, that Tesla may need to cut prices further, pressured by an ongoing price war especially in China and to prop up demand for its aging line-up of models even as its new factories in Berlin and Texas churn out cars. Finance chief Zachary Kirkhorn promised in January that Tesla would not go below margins of 20 per cent and an average selling price of US$47,000 across models.
The EV maker has previously said that logistics issues have caused it to deliver far fewer cars than it makes. In the first quarter, it delivered about 18,000 fewer cars than it made.