
the staff of the Ridgewood blog
Paramus NJ, Tesla stock cratered more than 10% on Thursday as investors assessed the impact of the electric vehicle (EV) giant’s aggressive price cuts and what CEO Elon Musk calls an “uncertain” economic environment.
Tesla has slashed the prices of some of its most popular models six times this year alone in an attempt to spur demand amid rising competition in the EV market, but analysts have cautioned that the tactic sacrifices margins. Investors got the first taste of what that might look like on Wednesday after the bell when Musk and company reported first-quarter earnings.
While Tesla’s revenue jumped 24% from a year ago in the first quarter to $23.3 billion, net income went in the other direction, sinking 24% to $2.51 billion. Price cuts also pushed the company’s gross margins down from 23.8% last quarter to 19.3%, well below Wall Street’s consensus estimate of 21.1%.
20% off all web services with Spark Driven https://1.sparkdriven.
On top of that, Musk said in the follow-up earnings call that “stormy weather” lies ahead for the economy, which could cause consumers to postpone “big new capital purchases like a new car.” He also noted that the Federal Reserve’s rapid interest rate hikes have had a serious impact on affordability over the past year: “Every time that the Fed raises interest rates, that’s the equivalent to an increase in the price of a car.”
Tesla launches the new Model 3 with almost 400 miles of range, but it’s just for businesses .Tesla is making a new version of the Model 3 for businesses in the UK. The new vehicle will feature a Long Range battery pack and a single RWD motor. Prices for the new Model 3 will start from £46,990. Deliveries will start in June.
Meanwhile, Elon Musk’s SpaceX’s Starship, the most powerful rocket ever constructed, exploded midair shortly after it launched in Texas on Thursday. No one was on board and the Federal Aviation Administration has grounded SpaceX’s Starship hours after a test launch from Texas ended with the destruction of the spacecraft and its booster.
yes and i thought i had a bad day
buying oppty
If anyone follows places like Reddit, all the lefties there are having erections over this news.