Tesla debuts $35,000 Model 3 but says, once again, it remains unprofitable
CEO Elon Musk's warning on profit contrasted with Tesla's statement in February that it was expecting a ‘very small’ net profit in the first quarter
San Francisco — Tesla said on Thursday it would not be profitable in the first quarter, as it offered — for the first time — a $35,000 version of its Model 3 sedan and said its global sales would now be online only, steps designed to increase demand and cut overhead costs for the electric vehicle maker. CEO Elon Musk's warning on profit during a conference call with members of the media, which did not include Reuters, contrasted with Tesla's statement in February that it was expecting a "very small" net profit in the first quarter. Shares of Tesla fell 3.4% after hours. Investors have voiced concern about whether Tesla would be able to maintain profit margins through cost cutting — such as recent layoffs — as it reduces prices of its newest vehicle. Still, the price drop could quell concerns from some analysts that demand for the higher-priced versions of the Model 3 was beginning to dry up in the United States, especially after a federal tax credit was cut in half this year. "Tesla...
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