The company’s gross margins continued to suffer from price cuts in the second quarter, despite revenues increasing by almost 50% year over year.
Tesla reported a 47% increase in net income and $24.9 billion in revenue for the second quarter, but its gross margins dropped to 18.2%. This is because of the company’s price reductions, which have raised interest in electric cars. Elon Musk, CEO of Tesla, lauded the unprecedented numbers but warned that facility closures could cause a drop in output in the third quarter.
Additionally, the business is increasing production at its Austin facility and intends to build a new facility in Monterrey, Mexico.