Tesla says it has no plans to stabilize the prices of its popular electric vehicles, though repeated price cuts have eaten into its profits.
The automaker, led by billionaire Elon Musk, is struggling with the impact of increased competition and higher borrowing costs on buyers.
It has responded to the pressure by repeatedly cutting prices this year.
It warned investors on Wednesday that product prices “are moving forward, up or down.”
Tesla said total sales rose to $23.3 billion (£18.4 billion) for the first three months of the year, up 24% year over year.
Despite the surge, profit fell 24% year-on-year to $2.5bn (£2bn) in the same period.
Tesla has resisted a broader decline in auto sales over the past year, helped by booming interest in electric vehicles.
But its market share has shown signs of erosion even as rivals launch their own electric vehicles. Meanwhile, Tesla’s deliveries have lagged after massively expanding production since last spring, fueling speculation that demand may be slowing.
The company has blamed delivery delays for the discrepancy and said price cuts will help keep customers coming.
“We’re not starting a ‘price war,’ we’re just lowering prices to enable affordability at scale,” Musk wrote on his social media platform Twitter earlier this month.
Tesla delivered nearly 423,000 cars in the three months ended March. That was 36% more than a year ago, but only 4% more than in the previous quarter.
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