Tesla Tempers Growth Expectations as Musk Sees Storm Ahead

Elon Musk is dialing back expectations for Tesla Inc. as years of rapid expansion collide with rising interest rates and a more cost-conscious consumer.

After months of persistent price cuts, Tesla’s margins have fallen well below the floor once set by its recently departed chief financial officer. The company is “ruthlessly” cutting costs to keep up, according to vehicle engineering chief Lars Moravy. But an unpredictable economic environment has Musk feeling “paranoid,” and as a result, Tesla is slow-walking its newest factory in Mexico.