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Can they sell them at a profit, or have they saturated the market now? I heard they actually have enough inventory that they were doing same day deliveries a
by drewg123 8y ago
Can they sell them at a profit, or have they saturated the market now?
I heard they actually have enough inventory that they were doing same day deliveries and offering end-of-quarter incentives. That's great for customers, but not so much for a company that is not profitable.
- TrainedMonkey 8y agoThey are still manufacturing premium version. People are still waiting on $35k one.
- heisenbergs 8y agoGross margins for model S and X are 25%+. The model 3 is supposedly profitable, at the scale that they have now achieved. Tesla's big spend is on R&D on new product lines, and ramping up production. In other words: their core business has long been cash flow positive. It's the growth that is requiring all the cash and creating short term losses.
- madamelic 8y agoI mean look at Amazon. They are basically on their last legs after doing the same idea. /s
- sokoloff 8y agoAnecdotal, but a friend's model 3 was originally scheduled for delivery today and got a text last night letting them know it would be delayed about a week, so it's not clear if they're starting to fluff Q4 numbers or if there was an operational or logistics issue of some sort.
- einarfd 8y agoSo far no Model 3 has been sold outside of the USA, so it is somewhat premature to worry about having saturated the market.