Tesla chief executive Elon Musk says the electric carmaker could continue to cut prices as the world economy is in “turbulent times”.
The multi-billionaire’s comments came after the company reported that its profit margins had been squeezed as it faced tough competition.
In recent months, Tesla has cut its prices several times in major markets, including the US and China.
The firm’s shares fell by more than 4% in after-hours trade in New York.
Tesla reported that its profit margin had fallen to the lowest level in four years.
The company said its gross profit margin fell to 18.2% for the three months to the end of June, down from 26.2% for the same period last year.
During a call with Wall Street analysts, Mr Musk signalled that he was open to cutting prices further if needed.
“One day it seems like the world economy is falling apart, next day it’s fine. I don’t know what the hell is going on,” he said.
“We’re in, I would call it, turbulent times,” Mr Musk added.
Investors are concerned about the possibility of more price cuts at Tesla, Arun Sundararajan, a Professor at the NYU Stern Business School, told the BBC.
“This feels like a price war with no long term strategy to raise margins if Tesla wins the war,” he added.