Tesla’s Profit Falls 37% After It Cut Car Prices

Tesla's profits have taken a significant hit, falling by 37% despite an increase in car sales. This decline is largely due to the company's decision to cut prices and offer low-interest loans, which reduced the profit margin on each vehicle sold. The surge in sales during the third quarter was partly fueled by consumers rushing to take advantage of a federal tax credit for electric vehicles before it expired in September. This situation highlights the challenges Tesla faces in balancing sales growth with profitability, making it a crucial moment for the company as it navigates the competitive electric vehicle market.