Core News Facts
Core inflation rose to 2.7% in June 2023, exceeding the Federal Reserve’s target of 2%. This uptick contributes additional pressure on companies and consumers, particularly affecting electric vehicle (EV) manufacturers like Tesla (NASDAQ: TSLA).
Tesla’s auto revenue dropped 16% to $16.7 billion in Q2, with deliveries down 14% to 384,000 vehicles. Additionally, the company’s automotive gross margin fell to 17.2% in Q2 2023 from 28.5% in 2022, indicating increased costs due to rising materials and tariffs, which have added approximately $300 million in expenses. CEO Elon Musk cautioned that tariffs could lead to inflation and economic downturn.
