Tesla Profit Falls 37% After Price Cuts

Electric vehicle giant Tesla reported a 37% drop in quarterly profit, despite selling more cars than expected. The decline in profitability was largely attributed to the company's decision to cut prices on its popular models, which resulted in lower revenue per vehicle. In an effort to boost sales and remain competitive in the increasingly crowded electric vehicle market, Tesla offered discounts and low-interest loans to customers, which took a toll on its bottom line.The company's pricing strategy appears to have paid off in terms of sales volume, with Tesla delivering a record number of vehicles during the quarter. However, the reduced prices meant that Tesla made less money on each car sold, contributing to the significant decline in profit. The company's financial results highlight the challenges faced by automakers in balancing sales growth with profitability, particularly in a market where competition is intensifying and consumers are increasingly price-sensitive.Tesla's decision to cut prices was seen as a strategic move to drive sales and maintain its market share, but it also underscores the pressure on the company to deliver strong financial performance. As the electric vehicle market continues to evolve, Tesla will need to navigate the trade-offs between pricing, profitability, and sales growth to maintain its position as a leader in the industry.