Found the official answer from the shareholder letter, page 3: - Non-GAAP automotive gross margin temporarily declined to 18.7%, which was in line with our exp

Found the official answer from the shareholder letter, page 3: - Non-GAAP automotive gross margin temporarily declined to 18.7%, which was in line with our expectations. The gross margin declined primarily because of a significant increase in Model 3 manufacturing costs to support the limited initial level of production. - Model S and Model X gross margin declined from Q2 primarily due to one-time price adjustments for discontinued trims and unfavorable trim mix. Numerous actions to improve Model S and Model X gross margin are underway. Consequently, we expect Model S and Model X gross margin to improve in upcoming quarters.