Tesla misses revenue mark as lowered car prices results in few takers

Tesla misses revenue mark as lowered car prices results in few takers

Drop in company’s gross margins in first-quarter earnings signal price cuts could hurt financials with share prices taking a tumble

Tesla narrowly missed Wall Street expectations in the first quarter of 2023 and gross margins dropped significantly in a signal that a series of price cuts could hurt the company’s financials. The company posted a revenue of 85 cents a share on $23.33bn total revenue, just below analysts’ prediction of 86 cents a share on $23.34bn.

Gross margins, a figure that investors are paying close attention to this quarter, dropped from 29.1% to 19.3% year-over-year after the company rolled out a series of recent price cuts.

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