Elon Musk: "We can sell Tesla for no profit"

• Financial

Elon Musk said in a conference last week that he could even sell cars for free and stake the whole business on self-driving by securing huge sums of money. Autonomous driving that should have already taken shape with the Robotaxi and with the final release of the FSD for Tesla cars.

Tesla's price reduction policy has already led to extraordinary sales results and triggered a real price war with many headaches among the main competitors. Tesla still has the margins given that it has a much higher profit for each car than all the others, would have the effect of making the American manufacturer gain even more market shares, which already boasts the achievement of spectacular goals such as being the first BEV manufacturer in China and producing the best-selling car in Europe overall.

Musk said: "We are the only ones in the world making cars that we could technically sell already today with zero margin, and in the future have an incalculable business exclusively through autonomous driving. I don't know how many of you will fully understand the meaning of this sentence that I just said, but it's very important." If it were, Musk would only have to focus a little less on iron earnings and more on services, represented precisely by functions such as Full Self Driving and much more that he has not yet made public, with the certainty that millions of owners will substantially forced to buy these features.

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Elon Musk lost $11.4 billion yesterday between Tesla and SpaceX. Twitter can also be included in Black Thursday, the social network of which it became the owner at the end of October last year given the discontent that generated the removal of the blue badges from the free accounts which was followed by the free distribution of the check to a selected group of VIP users.

Musk expressed satisfaction with the test conducted yesterday by SpaceX Starship, complimenting the work team and stating that he has learned a lot for the next launch in the coming months. Several media defined yesterday's event as a failure due to the explosion of the rocket, forced by SpaceX for safety reasons following the problems that arose before the separation of the two stages, however it must be remembered that the test was focused on the take-off phase of Starship, an action that was completed correctly.

Musk's first quarter reported Tesla net income dropped 24 percentage points and gross margin dropped from 29.1% in Q1 2022 to 19.3%. Tesla shares lost 9.75% yesterday, the decline of the last five days is 10.31%. The market didn't like the company's willingness to prioritize sales volumes over profits.