The Good News and Bad News About Tesla's EV Price Cuts

The thinking was strategically sound: Lower your prices to make your products more competitive in an increasingly crowded market. Sometimes as a business, you just do what you have to do.

's (NASDAQ: TSLA) early 2023 decision to trim the sticker prices on its electric vehicles, however, has clearly had its consequences. As could have been expected, its per-car profits were initially crimped. What might have been less expected, though, is that its profits continue to be pinched despite the company having achieved a much greater scale of production.

Shareholders might want to start asking tougher questions about this EV business's math.

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Source Fool.com