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That's a pretty wild assumptions. The best most reliable teardown and analysis of the Model 3 said it was profitable at 35$ even potentially extremely profitabl
by nickik 8y ago
That's a pretty wild assumptions. The best most reliable teardown and analysis of the Model 3 said it was profitable at 35$ even potentially extremely profitable (30% margin).
Given their production numbers are now quite stable at a high level and continue to grow I see absolutely reason for most of your assumptions.
Producing higher value models in the initial production is highly sensible because higher margins at low production give you better cash flow. Essentially this means they can produce a profit on every car, rather then starting with per car loses and then moving to profits.
- jmpman 8y ago“We assume the base version at $35,000 would lose about $5,900 per car.“ https://markets.businessinsider.com/news/stocks/tesla-model-3-has-next-gen-military-grade-tech-ubs-says-but-will-never-turn-profit-2018-8-1027468439 https://markets.businessinsider.com/news/stocks/tesla-model-... Is this UBS analysis more reliable than the one indicating a 30% margin for the base model?