3 ms·
Not sure what the other guy meant, but this article goes over the differences in how Tesla reports gross margin: https://seekingalpha.com/article/4153659-just-
by mhermher 9y ago
Not sure what the other guy meant, but this article goes over the differences in how Tesla reports gross margin:
https://seekingalpha.com/article/4153659-just-say-no-teslas-misleading-margin-metric https://seekingalpha.com/article/4153659-just-say-no-teslas-...
To summarize:
1. Tesla’s Calculation Ignores The Cost Of Its Service Center Network
2. Tesla Excludes Its R&D From Its Calculation
3. Tesla Allocates Some Supercharger Costs To SG&A
4. Expensing Of Warranty Costs
5. Front-Loading Of Gross Margin
You'd have to read the details on what each means or implies.
- schiffern 9y agoYikes, this one's even worse. Briefly, 1. Tesla doesn't ignore it (the very next line is "Total automotive & services and other segment"), plus the author completely ignores service revenue which pays 81% of those costs 2. True, but Ford is stable and spends 4% of revenue while Tesla is growing and spends 12% 3. No they don't, Supercharger costs are all under "Cost of automotive sales revenue" on pp51 4. True, but this is tiny 5. Again, this is covered under "Total automotive & services and other segment" on the very next line, and again that bin necessarily includes additional revenue, not just additional costs as this author pretends (apparently 'forgetting' that car dealerships make money??). The author's "adjusted" 2017 numbers arbitrarily chop 964m off revenue to "correct" for Tesla running its own service centers, but Tesla's service centers only incurred a net loss of 228m. The article is laughably inaccurate (presuming you don't hold a short position). More FUD from the self-avowed Tesla shorts. Nothing more.