(Reuters) -Tesla Inc missed market estimates for first-quarter total gross margin on Wednesday, throttled by a series of aggressive price cuts meant to spur demand in a sagging economy and fend off rising competition.
Elon Musk-led Tesla reported total gross margin of 19.3%, compared with expectations of 22.4%, according to analysts polled by Refinitiv.
The electric-vehicle maker lowered sticker prices four times in the United States between January and March, sacrificing its industry-leading margin to maintain its dominance in the U.S. and catch up with rival BYD in China – its second-largest market. But a murky economic outlook meant that Musk’s plan to ride out a recession with price cuts and lower production costs was not enough to make up for strained consumer spending on big-ticket items. Tesla deliveries in the first quarter rose 4.3%from the fourth quarter.
The company reported first-quarter revenue of $23.33 billion, compared with consensus estimate of $23.21 billion, according to 22 analysts polled by Refinitiv.
(Reporting by Akash Sriram in Bengaluru; Editing by Anil D’Silva)
