The Model Y maker’s gross and operating profit margins were once the envy of the entire American automotive industry.
As Tesla began rolling more vehicles off the production line than it could sell, however, Musk repeatedly offered discounts to rev demand.
Even setting aside tough financial comparisons because of the factory shutdowns needed to retool its best-selling vehicles, progress has been sluggish.
Tesla’s gross margin at its core automotive business, adjusting for regulatory credits, has fallen nearly in half, to 16.3%, according to the latest quarterly results released on Wednesday.
Tesla sold just a hair under half of all U.S. battery-powered rides in the third quarter, according to Cox Automotive, down from 75% in early 2022.
Persons:
BYD, Elon Musk, Tesla, Musk, they’re, Jeffrey Goldfarb, Sharon Lam
Organizations:
Reuters, U.S, HK, General Motors, Ford, Cox Automotive, Reuters Graphics, Thomson
Locations:
Detroit, United States, China, Shanghai