Tesla reduces price of cars putting sales ahead of profit for the electric vehicles as confirmed by Elon Musk

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The company is looking to boost the sales figures and is ready to compromise the profits in its pursuit

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The decision comes after Tesla posted its lowest quarterly gross margin in the last two years missing estimates

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The price decline in the United States and China markets was anticipated to raise the demand of the cars

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The lower prices caused revenue to fall $1.3 billion compared to the fourth quarter despite record deliveries

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Elon Musk had pledged that the sale of the cars would reach 2 million deliveries this year but corrected estimates

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Tesla said in a statement it still believed its operating margin would remain the highest among big carmakers

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Musk confirmed that the rate hike by the Federal Reserve and the current state of the economy might be the reason

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