Is another discount on Tesla electric vehicles on the horizon?

Tesla CEO Elon Musk says the electric car maker could continue to cut prices as the global economy faces "turbulent times".

The comments from one of the richest Earthlings came after the company reported that profit margins had fallen due to fierce competition.

In recent months, Tesla has repeatedly cut prices in major markets, including the US and China. Even in Slovenia, the prices of Tesla vehicles fell by a few thousand, depending on the model.

Due to the drop in profits, Tesla shares fell by 4 % after the last trading, which only further unnerved investors. Tesla recently reported that its profit margin fell to its lowest level in four years.

The company said its gross profit margin fell to 18.2 % in the three months to the end of June, down from 26.2 % in the same period last year.

Speaking to Wall Street analysts, Musk hinted that he is open to further price cuts if necessary.

“One day the world economy seems to be falling apart, the next day it's fine. I don't know what the hell is going on,” he said. "We are in what I would call turbulent times," Mr. Musk added.

Arun Sundararajan, a professor at NYU's Stern Business School, told the BBC that investors were worried about the possibility of more price cuts at Tesla.

"This seems like a price war without a long-term strategy to raise margins if Tesla wins the war," he added.

Earlier this year, Musk said he believed pursuing higher sales with lower profits was the "right choice" for Tesla. At least for now, he has not convinced most shareholders with his optimism.

The company has cut prices in markets including the US, UK, Europe and China to compete with rival manufacturers.

Earlier this month, the company said it had delivered a record number of vehicles in the three months to the end of June. This is the result of an agreement between car manufacturers who have agreed to use Tesla's e-vehicle charging technology. On Wednesday, Japanese auto giant Nissan said its electric vehicles in the US and Canada will be equipped with charging ports developed by Tesla starting in 2025.

Nissan Americas CEO Jérémie Papin said the company is committed to "making electric mobility even more accessible." And the first step is to adopt established charging technology. Ford and General Motors also made a similar decision.

Charging infrastructure is perhaps the biggest flaw of electric vehicles at the moment. Even in Slovenia, one of the most common sources of dissatisfaction is the insufficient number of (fast) charging stations, or the search for working charging stations.

Cover image: Image by frimufilms on Freepik