Musk warns of further blows to Tesla profits as shares fall back

Tesla’s shares have taken a tumble after the the firm warned of more hits to its already-shrinking profitability.

Elon Musk, chief executive at the carmaker, said Tesla will have keep dropping the price of electric vehicles if rising interest rates persists.

The automotive’s gross margins are already feeling the effects of months of price reductions have, as it plummeted to a four-year low in the second quarter.

In addition to potentially having to budge further ...