Elon Musk, CEO of Tesla, has indicated he would cut electric vehicle prices amidst “turbulent times”, despite increased competition and margin pressures. Recent cost reductions in multiple markets and higher incentives to shift inventory signify the company’s strategy against marketplace volatility. Musk maintains that lower margins are justified to boost volume growth, even if it necessitates further price reductions. However, this approach has impacted Tesla’s automotive gross margin, which fell to 18.1% in 2Q from 19% in 1Q.