Tesla misses revenue mark as lowered car prices results in few takers

Drop in company's gross margins in first-quarter earnings signal price cuts could hurt financials with share prices taking a tumble

Tesla narrowly missed Wall Street expectations in the first quarter of 2023 and gross margins dropped significantly in a signal that a series of price cuts could hurt the company's financials. The company posted a revenue of 85 cents a share on $23.33bn total revenue, just below analysts' prediction of 86 cents a share on $23.34bn.

Gross margins, a figure that investors are paying close attention to this quarter, dropped from 29.1% to 19.3% year-over-year after the company rolled out a series of recent price cuts.