Tesla Margins Dip Amid Strategic Discounts

Tesla's gross profit margin declined to 16.3% in the fourth quarter, missing analyst expectations of 19.03%. The company introduced financing offers and discounts to stimulate demand for its electric vehicles, affecting the profit margins. In the previous quarter, Tesla recorded a 19.8% profit margin.

Tesla's financial performance in the fourth quarter did not meet market expectations as the electric vehicle manufacturer reported a lower-than-expected gross profit margin.

The company's margin fell to 16.3%, missing analysts' forecasts of 19.03%, as Tesla implemented financing offers and discounts to combat decreased demand.

Previously, Tesla recorded a 19.8% margin in the third quarter, highlighting the impact of their strategic incentives on profitability.

(With inputs from agencies.)