Margins Likely To Slip Again

Tesla’s Q4 earnings are on tap after the market close on January 24, closing up a year in which aggressive price cuts helped the automaker top Q4 delivery estimates reach a new record and narrowly beat its 1.8 million volume target. Tesla’s continued actions to improve vehicle affordability throughout the year have been detrimental to margins, as average selling price is falling quicker than production costs.

We covered in the past how Tesla’s lower selling prices in China…

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