Tesla plans to put growth ahead of profit

Solid demand: Musk departs the company’s office in Washington. The Tesla CEO says that although the economy remains uncertain, the electric vehicle maker’s orders exceed production. — Reuters

SAN FRANCISCO: Tesla Inc posted its lowest quarterly gross margin in two years, missing market estimates as it grappled with aggressive price cuts meant to spur demand in a sagging economy and fend off rising competition.

The electric vehicle (EV) maker has slashed prices several times in the United States, China and other markets since late last year, as chief executive officer Elon Musk said Tesla could sacrifice its industry-leading margins to drive volume growth during a recession and keep pace with the rising competition in China.