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The biggest news in this release is gross margin. Gross Margin Jumped from 26.7% in Q2 to 33.2% in Q3. For reference, MRQ, GM gross margin: 13.9% Toyota: 23
by 11thEarlOfMar 10y ago
The biggest news in this release is gross margin.
Gross Margin Jumped from 26.7% in Q2 to 33.2% in Q3.
For reference, MRQ,
GM gross margin: 13.9%
Toyota: 23.6%
VW: 19.9%
Granted, those are not luxury auto makers, but Tesla is more profitable on a gross margin basis. That margin fuels everything from cash flow to R&D spending. 33% for an automaker is huge.
- vvanders 10y agoYup, and as battery prices drop those margins are going to get even better(although I doubt we'll see the same level on the Model 3).
- ams6110 10y agoOnly if they can sustain prices as competition comes online from other makers.
- jsight 10y agoIt is going to take about 3 years for competition to reach where Tesla is right now with regards to range and charging networks.
- gniv 10y agoCharging networks maybe, but range no. The Chevy Bolt that will start selling in a couple of months has 238 miles range. GM doesn't have the superchargers, but they can afford to price these cars with zero profit for a while, if they want to undercut Tesla.
- nartsbtaa 10y agoBut who would drive a Chevy Bolt if they could drive a Tesla? Even if the Bolt is a better car, Tesla has the better brand name for now.
- deleted 10y ago[deleted]
- jsight 10y agoMy point was that the two are important together. A 240 mile range without a supercharger network is still a car that will not be particularly useful for a long trip (2+ hour drive).
- ceterum_censeo 10y agoIs the federal EV tax credit a component of the margin calculations?
- danhak 10y agoNo, the EV tax credit never goes to Tesla it goes to the consumer. The figures also exclude the CARB ZEV credits.
- ceterum_censeo 10y agoDoesn't the credit go to Tesla when it is leased?
- mikeash 10y agoIt goes to the bank that handles the lease.
- ceterum_censeo 10y agoI guess that is my confusion, I thought Tesla was originating the lease.
- mikeash 10y agoTesla sells the car to a bank, and the bank leases it to the customer. For leases done through Tesla directly, Tesla just talks to the bank for you.
- ceterum_censeo 10y agoSorry, not trying to be difficult, but this doesn't clear things up for me. Are you saying that Tesla does not lease directly to the consumer?
- 10y ago