Renowned tech visionary Elon Musk, the CEO of multiple futuristic companies including Tesla, appears confused by the surprising state of the global economy.
During a recent second-quarter earnings call with analysts, Musk candidly stated, “One day, it seems like the world economy is falling apart, next day, it’s fine. I don’t know what the hell is going on.”
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Acknowledging the uncertain times, Musk sought to emphasize his point by seriously referencing his desire for a “crystal ball” to predict the unpredictable.
Tesla’s investor-relations department concurred, noting in its investor deck that the “challenges of these uncertain times are not over.”
The electric vehicle manufacturer has faced the brunt of economic fluctuations and intense competition, prompting it to adjust its pricing strategy.
Tesla has repeatedly reduced the prices of its electric vehicles this year to remain competitive and adapt to the volatile market conditions.
Economic uncertainties have led potential buyers to hesitate before making significant decisions like purchasing a new car.
One contributing factor to this apprehension is the Federal Reserve’s interest-rate-hiking cycle, which began in March the previous year.
The increased interest rates have made buying anything on credit more expensive, including vehicles. Hence, Tesla decided to reduce its EV prices to mitigate this impact.
Musk indicated that Tesla might further decrease prices to stimulate sales, depending on the prevailing macro-environment.
Despite the challenging economic climate, Tesla reported remarkable results, with all-time high revenue of $24.93 billion, surpassing analysts’ forecasts of $24.47 billion.
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Earnings per share also exceeded expectations at 91 cents adjusted, compared to the projected 82 cents.
Nevertheless, Tesla’s share prices experienced a decline of 4.2% to $279.07 apiece in after-hours trade, although they remain up 136% since the beginning of the year.
