Tesla is Focusing More on the Volume Than Profit
Tesla is leading the market with its electric vehicles. The EV giant witnessed a share price drop of up to 6 percent in overnight trading.
Tesla recently published its first quarter results. After the price cuts by the company of as much as 20 percent, Tesla's CEO strategy of investing in the long-term market shares over a short-term profit has led to a point y-o-y drop in the gross profit margin in the first quarter. It is three points more than expected by the analysts and the lowest since the fourth quarter of 2020.
The company's entire focus is now firmly on volume. According to the reports, the company also reported a quarterly delivery record of 422,875 vehicles which is 36 percent more than the first quarter of 2022. Even after Tesla's impressive rise to prominence in North America, looking at the company's market share worldwide will underscore the reasons behind the drastic uplift in the sales volume at any cost.
The reports say Tesla's home market dominance has only been replicated to a significant degree in Oceania and Australia. And when we take the case of Asia, the Chinese manufacturer Wuling is in the pole position, and on the other hand, Volkswagen is leading in Europe.
