Tesla, Inc. TSLA shares were pulling back sharply in premarket trading on Thursday as investors digested the electric vehicle maker's first-quarter earnings report and the management commentary on the earnings call.
The stock plunged 7.54% to $166.98 in premarket trading, according to Benzinga Pro data. The stock is approaching its near-term low of $163.91 reached on March 13.
The Elon Musk-led company reported first-quarter revenue that climbed past muted expectations and the topline growth was the worst since the second quarter of 2020.
Its earnings per share were in line with the consensus but marked a 20% year-over-year drop, as margins fell amid the multiple price cuts.
More importantly, Musk said Tesla has the potential to price its vehicles at zero profit as it has the opportunity to make tremendous economics in the future through autonomous software.
The billionaire also tweaked the language used for volume guidance and said the 2-million-unit he hinted at previously could be an aspirational goal.
Deepwater Asset Management's Gene Munster said by sacrificing near-term profit, Tesla could be jeopardizing the financing needed for long-term growth.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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