Replies to post #79015 on Tesla Inc (TSLA)

[boston745]

Tesla points out that these cuts reduced its margins but says that this margin reduction happened at a “manageable rate.” In Q1 last year, Tesla’s operating margin was 19.2%, and this year it’s 11.4%, a drop of 779 basis points.

This is a big chunk, cutting operating margins almost in half – and note that there have been further price cuts, both in the US and elsewhere, since the end of the quarter. So we could expect average selling prices to go down further in next quarter’s earnings and perhaps another cut to margins.

I'm curious how much Tsla pump in price has helped sales this quarter The 2nd half of the year is supposed to be economocally worse.

[Tesla thru the roof]

Tesla is doing so great! Your stats are wrong.

[chklingon]

Who says those cars are in inventory? Many are still on trucks, trains and ships on the way to delivery. They no longer do an end of quarter push to clear everything.