Tesla’s Latest Price Cuts Risk Wiping Out China Earnings

(Bloomberg) — Tesla Inc.’s price cuts in China could cost the carmaker all its operating profit in the world’s biggest electric-vehicle market, Evercore ISI warned in a new report.

The automaker had the most margin to give in North America, where it also marked down vehicles over the weekend, Evercore’s Chris McNally wrote Monday. Its business in China “may now be breakeven or even negative” on the basis of earnings before interest and taxes, he said.