April 20 Reuters Tesla Inc39;s shares sank 8 on Thursday and dragged down other automakers after Chief Executive Elon Musk signaled the electricvehicle maker will keep cutting prices to drum up demand even after taking a big hit to profitability.

Tesla shares were trading at 168 before the bell, with at least 15 analysts lowering their price targets on the stock. The company was set to lose nearly 50 billion in market value, if losses hold.

Facing a volatile macroeconomic backdrop and weakening demand, Tesla continues to prioritize units over nearterm profits, said analysts at Canaccord Genuity.

Tesla39;s gross margins fell to a more than twoyear low in the first quarter and missed market estimates, after the company kicked off a discounting drive in January to defend its dominance in the U.S. and make inroads in key market China.

Musk suggested more cuts ahead, saying the company that has cut slashed prices six times so far this year will put sales growth ahead of profit in a weak economy.

That spooked investors, who dumped automakers from Europe to the U.S. on fears that margins will be sacrificed for maintaining share in a market that is slowing this year due to economic uncertainty.

Longterm we believe this Tesla39;s price cuts is the right strategy and leverages their cost leadership position. However, this does not come without pain as we now believe margins will get worse before they get better, RBC analyst Tom Narayan said.

U.S. automakers ranging from…