Musk looses $20.3 billion as Tesla stocks crashes nearly 10%

Tesla stocks crashed nearly 10% resulting, CEO Elon Musk to loose $20.3 billion dollars. This happened after the company forewarned that it might need to continuously lower the cost of its electric vehicles.

As of NASQAQ the stocks decreased in value by 9.7% to $262.90 dollars per share. Reports published by Tesla for the second quarter of this year showed the company secures a net revenue of $25 billion, having net income of a staggering $2.7 billion. But, the profit margins remained low at 18.2% as compared to 25% in Q2 of 2022.

The latest reports indicated the stock price even falling to $260.02, as of 21st July, 2023. This is $2.88 or 1.10% of decrease on Friday.

Tesla Stock 21st July, 2023

Tesla is said to have selling more than a million units of the Model Y and more than 500,000 units of Model 3 each year. As per analysts at CNN, those are extraordinary numbers in terms of sales in the electric automobile industry.

Tesla CEO Elon Musk also indicated in the earnings report that they’ll be delivering their revolutionary truck, Cyber Truck at the end of 2023. But the point to noted in the ongoing recession, they still managed to deliver 466,140 cars during the second quarter. This is the highest number of viechels that the company has ever delivered in a quarter.

But the big concern was the overall net profit. Tesla has undergone a lot of price cuts to incur demand and is this a great strategy to stabilize the company’s growth?

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