Tesla stock cratered nearly 10% on Thursday as investors assessed the impact of the electric vehicle giant’s aggressive price cuts and what CEO Elon Musk calls an “uncertain” economic environment.
Tesla has slashed the prices of some of its most popular models six times this year alone in an attempt to spur demand amid rising competition in the EV market, but analysts have cautioned that the tactic sacrifices margins. Investors got the first taste of what that might look like on Wednesday after the bell when Musk and company reported first-quarter earnings.
