Investing.com -- Shares in Tesla (NASDAQ:TSLA) slipped in premarket trading Thursday after Chief Executive Elon Musk suggested that further price reductions may be coming this year, even as the electric carmaker's ongoing price war squeezes margins.
Tesla reported EPS of $0.91 on revenue of $24.93 billion. Analysts polled by Investing.com anticipated EPS of $0.79 cents on revenue of $24.29B.
Gross margins excluding credits, which have been closely watched following recent price cuts aimed at boosting volume and battling intensifying electric vehicle (EV) market competition, fell 6.82% to 18.2% in Q2 year-over-year, though that was higher than analysts' estimates for 16.9%.
"We believe Tesla is seeing steady demand post price cuts in the U.S. and China with margins now in stabilization mode that should bottom over the next 1-2 quarters," Wedbush said in a note Wednesday following the results.
The Tesla price cuts helped the EV maker boost its installed base and rake in new customers, with deliveries surging 86% to 466,140, marking a record quarter for the company.
Tesla said it remains on track for initial deliveries of its Cybertruck this year. Earlier this week, the company said it had started production of its Cybertruck in Texas.