Tesla pledges to cut costs amid ‘uncertain’ time
With the release of its Q4 2022 earnings today, Tesla is making it clear to shareholders that it plans to keep cutting the cost of its electric vehicles to withstand “uncertain” times.
If there were a theme to Tesla’s Q4 2022 shareholder letter published today, it would be cost-cutting.
Tesla started out by writing:
As we progress into 2023, we know that there are questions about the near-term impact of an uncertain macroeconomic environment, and in particular, with rising interest rates. The Tesla team is used to challenges, given the culture quired to get the company to where it is today. In the near term we are accelerating our cost reduction roadmap and driving towards higher production rates, while staying focused on executing against the next phase of our roadmap.
The company is making that statement after implementing some massive price cuts across its entire lineup earlier this month.
Investors are worried about the impact on the company’s profitability.
While we won’t know the exact impact until the next earnings report, shareholders do get some hints at the impact from the Q4 2022 results released today.
Tesla confirmed that 51% of the 405,000 vehicles it delivered in Q4 were delivered in December when Tesla started to offer some significant discounts on its vehicles.
Despite half of its deliveries getting discounted, Tesla only took a two-point hit on its automotive gross margin in Q4 – going from 27.9% in Q3 to 25.9% in Q4.
That’s encouraging for shareholders, but the gross margin hit is expected to be much bigger in Q1 since the price cuts are more significant than the discounts Tesla was offering in December 2022.
To further highlight opportunities to reduce costs, Tesla noted that it has been able to reduce its end-of-quarter delivery waves. The 51% of vehicles delivered in the third month of the quarter in Q4 is down from 74% in Q2.
Tesla says that it is working to keep bringing that percentage down for smoother deliveries throughout quarters, which should help with costs.
At the end of its shareholder’s letter, Tesla again reemphasizes that cost efficiency is crucial:
We are particularly focused on vehicle cost during this period of macroeconomic uncertainty, high-interest rates (thus higher cost of vehicle financing) and vehicle price deflation. We continue to focus on cost efficiencies while improving functionality and reliability. While cost-efficient manufacturing of EVs is still rare across most of the industry it is critical for profitability.
Tesla seems confident that it can keep its lead in selling electric vehicles profitably.
Electrek’s Take
I think Tesla is onto something here – especially with that last comment. It is almost a warning to the rest of the industry that if they can’t keep their EV cost down and start selling EVs profitably, they are in real trouble.
Today’s earnings were encouraging for investors with Tesla only taking a two-point hit on gross margins. Q1 will be much worse, but I now think it’s possible Tesla could still maintain something close to 15% gross margin despite the big price cuts.
Most automakers would sell their soul to the devil to get 15% gross margins, especially on electric vehicles.
It adds to my theory that Tesla might have just started an EV price war that it will likely win.
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Believe it or not, you can lease an EV for under $200 a month. New deals on models like the 2025 Hyundai IONIQ 5 and Kia EV6 are hard to pass up this month.
Electric vehicles have been all over the news lately, with the Trump administration threatening to end federal incentives and introducing new tariffs that are expected to lead to higher prices.
On the positive side, new EV models are arriving, giving buyers more options and driving prices down. Many automakers reported record US electric car sales in the first three months of 2024.
GM remained the number two seller of EVs behind Tesla after sales doubled in Q1 2025. With the new Equinox, Blazer, and Silverado EVs rolling out, Chevy is now the fastest-growing EV brand in the US. Ford’s Mustang Mach-E is off to its best sales start since launching, with over 11,600 models sold in the first quarter.
With the 2025 models rolling out and about 15 new EVs arriving this year, many automakers are introducing steep discounts to move vehicles off the lot.
EVs for lease for under $200 a month in April
Although the decade-old Nissan LEAF remains one of the most affordable this April at just $149 per month, there are a few EVs under $200 right now that are worth taking a look at.
The new 2025 Hyundai IONIQ might be the best EV deal this month, with leases as low as $199. Hyundai is currently promoting a 24-month lease deal with $3,999 due at signing.
Hyundai upgraded the electric SUV with a bigger battery for more range (now up to 318 miles), a sleek new look inside and out, and it now comes with an NACS port so you can charge it at Tesla Superchargers.
The offer is for the IONIQ 5 SE RWD Standard Range, which has a driving range of up to 245 miles. For just $229 a month, you can snag the SE RWD model, which has a range of up to 318 miles and a more powerful (225 horsepower) electric motor. It’s also a 24-month lease with $3,999 due at signing.
To sweeten the deal, Hyundai is offering a free ChargePoint Home Flex Level 2 EV charger with the purchase or lease of any 2024 or 2025 IONIQ 5. If you already have one, you can opt for a $400 public charging credit.
After slashing lease prices this month, the 2025 Nissan Ariya is actually cheaper than the LEAF in some regions. In Southern California, the 2025 Nissan Ariya Evolve AWD is listed at just $129 per month. The AWD model has a range of up to 272 miles.
The deal is for 36 months, with $4,409 due at signing. In April, Nissan cut Ariya lease prices to around $239 in most other parts of the country.
Kia has a few EVs available to lease for under $200 a month in April. The 2025 Kia Niro EV Wind is listed at just $129 for 24 months, with $3,999 due at signing. Kia’s crossover SUV has EPA-estimated range of 253 miles.
The 2024 EV6 may be worth considering at just $179 for 24 months ($3,999 due at signing). In California, the EV6 Light Long Range RWD is only slightly more than the Niro Wind.
In most other parts of the country, you can still find the EV6 for under $200 a month. The Light Long Range RWD trim offers up to 310 miles of EPA-estimated range.
| Lease Price | Term (months) |
Amount Due at Signing | Driving Range | |
| 2025 Hyundai IONIQ 5 SE RWD Standard Range | $199 | 24 | $3,999 | 245 miles |
| 2024 Kia EV6 Light Long Rang RWD | $179 | 24 | $3,999 | 310 miles |
| 2024 Kia Niro EV Wind | $129 | 24 | $3,999 | 253 miles |
| 2025 Nissan Ariya Evolve AWD | $129 | 36 | $4,409 | 272 miles |
| 2025 Nissan LEAF S FWD | $149 | 36 | $2,629 | 149 miles |
| 2024 Fiat 500 INSPI(RED) | $199 | 24 | $2,999 | 149 miles |
And don’t forget the 2024 Fiat 500e, which is now listed at just $199 for 24 months with $2,999 due at signing. The electric hatchback offers a range of up to 149 miles.
If you are looking to spend a little more, check out our list of EVs you can lease for under $300 a month.
Ready to snag the savings while they are still here? At under $200 a month, some of these EV lease deals are hard to pass up right now. Check out our links below to find deals in your area.
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![The US’s first solar panels over canals pilot is now online [video]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2025/04/Project-Nexus-solar-canal.jpg?resize=1200,628&quality=82&strip=all&ssl=1)
Project Nexus, the first solar panel canopies over irrigation canals in the US, is now online in California, and there are plans to expand the project to other areas.
Project Nexus is a $20 million pilot in central California’s Turlock Irrigation District launched in October 2022. The project team is exploring solar over canal design, deployment, and co-benefits using canal infrastructure and the electrical grid.
India already has solar panels over canals, but Project Nexus is the first of its kind in the US.
The Turlock Irrigation District was the first irrigation district formed in California in 1887. It provides irrigation water to 4,700 growers who farm around 150,000 acres in the San Joaquin Valley.
Project Nexus will explore whether the solar panels reduce water evaporation as a result of midday shade and wind mitigation, create improvements to water quality through reduced vegetative growth, reduce canal maintenance as a result of reduced vegetative growth, and, of course, generate renewable electricity.
The California Department of Water Resources, utility company Turlock Irrigation District, Marin County, California-based water and energy project developer Solar AquaGrid, and The University of California, Merced, are partnering on the pilot. Project Nexus originated from a 2021 research project led by UC Merced alumna and project scientist Brandi McKuin.
Solar panels were installed at two sites over both wide- and narrow-span sections of Turlock Irrigation District canals in Stanislaus County, in various orientations. The sections range from 20 feet wide to 100 feet wide. University of California, Merced has positioned research equipment at both sites to collect baseline data so the researchers can decide where solar will work and where it won’t.
In February 2023, Project Nexus announced it would also deploy long-term iron flow battery storage in the form of two ESS 75kW turnkey “Energy Warehouse” batteries.
You can learn more about Project Nexus here:
Read more: In a US first, California will pilot solar-panel canopies over canals
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