When Tesla (NASDAQ: TSLA) lowered the sticker prices on its electric vehicles (EVs) early this year, investors rightfully expected the move to crimp the company's per-car profits. What wasn't clear was by how much or how long the discounting would work against Tesla's bottom line.

After three reported quarters' worth of this discounting, however, investors are getting a better feel for the fallout. Tesla's per-car profits continue to dwindle, with sticker prices still falling faster than their production costs.

And yet, there's plenty of room and reason for both figures to keep falling. It's not too soon for shareholders to start asking when and where this profit deterioration will stop.

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Source Fool.com