Tesla's Profit Concerns and Price Cuts Cause Stock to Plummet.
Tesla's stock fell by 9.75% on Thursday, reaching its lowest point since January, as the company reported gross margins below 20% for the first time in three years. The EV-maker's profit slid to $2.5 billion from $3.3 billion a year ago, with analysts cutting estimates due to margin pressure. Tesla has cut prices six times this year to boost demand, but production has outpaced demand. Despite ramping up production and deliveries, the company's margins have shrunk, leading to concerns about its long-term prospects.