Commentary

Musk is in tough spot with Tesla margins shrinking despite price rise

The CEO is stuck between producing margins that Tesla’s valuation will require or offering electric cars at ‘affordable’ prices

Prices are now at 'embarrassing levels' but Musk is still feeling the squeeze
Prices are now at 'embarrassing levels' but Musk is still feeling the squeeze Photo: Getty Images

Therese Poletti writes the ‘Tech Tales’ column for MarketWatch

Even as Telsa “Technoking” Elon Musk said the electric-vehicle maker’s current prices are at “embarrassing levels”, the company on 20 July still reported its lowest gross margins in more than a year amid decades-high inflation, putting Musk in a difficult situation.

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