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It's not just owners. In fact, guarantee service can eat a lot of planned margin for TSLA. Simply put, carmakers sell each car for X and they assume that on av
by nopriorarrests 9y ago
It's not just owners. In fact, guarantee service can eat a lot of planned margin for TSLA.
Simply put, carmakers sell each car for X and they assume that on average each car will require Y dollars in a free service, and automaker will end up with Z of profits. If Y is severely underestimated, it may hurt the bottom line.