Tesla's Market Value Plummets Amid Price Wars and Self-Driving Hype
Tesla's shares fell by almost 10% after CEO Elon Musk indicated that the company will continue to cut prices to increase demand, even after taking a significant hit to margins. At least 15 analysts lowered their price targets on Tesla, whose market value was on track to drop by $50bn to about $517bn. Tesla's gross profit margins fell in Q1 to the lowest in over two years, missing market estimates, after the company kicked off a global price war in January to defend its dominance in the US and make inroads in China, its second-largest market.
