Musk says Tesla is Willing To Sacrifice Profits For More Volume

Musk Says ” On Tesla’s Q1 2023 earnings call, CEO Elon Musk reassured his investors that Tesla’s margins are among the healthiest in the industry. However, despite delivering a record 4,22,875 units in the first quarter of 2023, Tesla’s net income is down 24 percent to $2.5 billion, just because of the price cut. ”

Musk Says Tesla Is Ready To Sacrifice Profits For Higher Volume

Tesla has taken 6 price cuts this year alone, and on the call, Musk informed Tesla’s investors that the company may reduce profit margins even further to achieve higher sales volumes. “We’ve taken the view that pushing for higher volumes and a larger fleet is the right choice, compared to lower volumes and higher margins,” Musk said, according to Automotive News.

According to Insider, Musk said that “Tesla is in a uniquely strong strategic position because we’re only making cars that technically we can sell at zero profit now and then actually drive autonomously in the future.” Are.” Can grow. may increase. “I can make tremendous economics. No one else can. I’m not sure how many of you will appreciate the depth of what I’m saying, but it’s extremely important.” He added that “it is better to ship a large number of cars at a low margin and reduce that margin later” because we have complete autonomy.

Tesla is Willing To Sacrifice Profits?

While Tesla aims to ramp up its production and aims for global output of 1.8 million to 2 million units this year — up from 1.4 million last year — it is also playing a tricky game of balancing brand reputation with increasing volumes. . , Used to be. But the growing number of Tesla cars on global roads will work in the company’s favor until it perfects its autonomous driving technology. Once the autonomous technology is ready to be deployed, Tesla can sell to existing owners making a profit, and the greater number of cars on the road will directly benefit the company’s income from the autonomous technology.

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