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Tesla's Profit Margin Dropped -- Here's Why That's a Good Thing

Tesla's Profit Margin Dropped -- Here's Why That's a Good Thing

In recent weeks, investors have been debating whether the vehicle price cuts Tesla (NASDAQ: TSLA) has announced in all its major markets were forced by a drop in demand or a strategic plan. Tesla is the only profitable pure electric-vehicle (EV) maker. While Tesla's gross and operating margins declined, the company reported record net earnings in the quarterly period, showing that its plan is paying off.