Elon Musk: Tesla may cut prices again in 'turbulent times'

Elon Musk, the CEO of Tesla, enters a Tesla vehicle as he departs a hotel in Beijing, China

Elon Musk, the CEO of Tesla, says the electric vehicle manufacturer may continue to reduce prices because the global economy is going through "turbulent times.".

The multi-billionaire made his remarks after the business disclosed that tough competition had reduced its profit margins.

Tesla has reduced its prices frequently recently in several important markets, including the US and China.

The company's shares dropped more than 4% in New York after-hours trading.

According to Tesla, its profit margin was at its lowest point in four years.

The business reported that its gross profit margin decreased from 26 point 2 percent for the three months ending in June to 18 point 2 percent this time around.

Mr. Musk indicated during a conference call with Wall Street analysts that he was willing to lower prices even further if necessary.

"The world economy appears to be collapsing one day, then appears to be in good shape the next. I have no idea what the hell is happening, he said.

We are currently experiencing turbulent times, Mr. Musk continued.

Arun Sundararajan, a professor at the NYU Stern Business School, told the BBC that investors are concerned about the prospect of further price reductions at Tesla.

With no long-term plan to increase margins if Tesla wins the war, he continued, "This feels like a price war.".

Earlier this year, Mr. Musk declared that he thought Tesla should focus on increasing sales at the expense of profits.

In order to compete with other manufacturers in markets like the US, UK, and China, the company has lowered prices.

The business announced earlier this month that it had delivered a record number of cars in the three months leading up to the end of June.

It happens as more automakers have decided to use Tesla's EV charging technology.

Nissan, a major player in the Japanese auto industry, announced on Wednesday that starting in 2025, all of its electric vehicles sold in the US and Canada will come with Tesla-developed charging ports.

Jérémie Papin, the chairman of Nissan Americas, stated that the company was dedicated to "making electric mobility even more accessible.".

The announcement comes after similar actions taken by American automakers Ford and General Motors.

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