Price cuts cause Tesla 1Q income, profit margins to fall
Price reductions across the model lineup cut into Tesla’s first-quarter net income, causing it to fall 24% from a year ago
By TOM KRISHER
Published - Apr 19, 2023, 07:42 PM ET
Last Updated - Jun 22, 2023, 05:43 AM EDT
DETROIT (AP) — Tesla's first-quarter net income tumbled 24% from a year ago as multiple price cuts across its model lineup reduced the amount of money generated per vehicle even as sales rose.
The Austin, Texas, electric car and solar panel company said Wednesday it made $2.51 billion from January through March, down from $3.32 billion a year ago. Revenue rose 24% to $23.33 billion, but the company's operating profit margin fell.
Tesla made an adjusted 85 cents per share in the first quarter, matching analyst estimates, according to FactSet. Analysts had expected profits to fall because of the price cuts.
