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That was the plan, though I don't expect that to happen until they stop losing money on every high-end luxury car they sell [0]. [0] http://fortune.com/2015/08

• ceejayoz 11y ago
  To my knowledge, they're not. From the Reuters article cited: > Tesla, most of whose cars are built to order directly, delivered 11,532 cars in the second period and said it had an operating loss of about $47 million, for an operating loss per car of about $4,000. An operating loss of $4k/car is not the same thing as them each car costing $4k more than it sells for. The loss includes what they're spending on the battery factory, new model development, etc.
  • mikeash 11y ago
    Exactly. Tesla's margins are something like 28%. A $100,000 Model S costs around $72,000 to make. If they sell more, their profits go up (or their losses go down, if you prefer). Tesla's financials are in a weird spot right now because they have all costs for two models of car, but they're essentially only selling one model. Model X production hasn't really ramped up, so they've paid all the massive costs of bringing it to market without the benefits of selling the result. Give it another six months and the picture should look pretty different.