Published , by Ozzie Mejia
Published , by Ozzie Mejia
Tesla's Q3 2023 earnings call has been an eventful one with CEO Elon Musk making several newsworthy statements. Among other notes, Musk has been looking ahead to the automaker's future and notes a concern for the current state of the economy. Specifically, he expressed concern for the current pattern of high interest rates.
"I am worried about the high interest rate environment that we're in," Musk said during the Tesla Q3 2023 earnings call. "I just can't emphasize this enough that for the vast majority of people buying a car, it's about the monthly payment. As interest rates rise, the proportion of that monthly payment that's interest increases naturally. If interest rates remain higher or get even higher, it's that much harder for people to buy the car, because they can't afford it."
Musk cites the high interest rate environment as he expresses concern over potential sales of vehicles like the Tesla Model Y. He notes that the Model Y, while it boasts some high-end features and a long shelf life, does come with a higher sticker price than the average vehicle, as do many other Tesla cars.
Musk's statement comes in the wake of Tesla reporting a 17.9 percent Q3 2023 gross margin with gross profit down a whopping 22 percent year-over-year. We'll continue watching for more from Tesla's CEO. Be sure to check out the Tesla Q3 2023 earnings results and conference call transcript.