Cheaper Teslas are hurting profits, but Elon Musk plans to keep slashing prices. Here’s why.

• Tesla’s profit margins plunged last quarter after the EV maker made aggressive price cuts.
• On an earnings call, CEO Elon Musk said he’d push ahead with the strategy.
• Musk could sacrifice short-term profits to grow Tesla’s market share.

Tesla disappointed its shareholders on April 19 when it revealed how its aggressive price cuts have affected its business.

The carmaker started slashing the price of its Model Y SUV and Model 3 sedan in January — and its latest earnings report showed that profit margins have fallen dramatically over the past quarter.