"Margin was impacted in part due to fundamental improvements in our operating efficiency, including higher fixed cost absorption, reductions in manufacturing an

"Margin was impacted in part due to fundamental improvements in our operating efficiency, including higher fixed cost absorption, reductions in manufacturing and material costs and continued improvements in vehicle quality and in part due to Smart Summon-related deferred revenue recognition, FX and other non-recurring items." How did Tesla cut fixed and variable costs so much? I want more details than this. This is extremely impressive! And what is an example "higher fixed cost absorption" in this context? Seems like most of the fixed costs here would be the already established factory and other fixed costs would be minimal. Its also surprising there was such a big opportunity for variable cost savings over a short time period of 1 quarter. Presumably this is from less manufacturing waste, higher quality output, and slightly higher production rates. Tesla is certainly a rare company that can find ways to increase margin this much, but its extremely impressive to see this happen over 1 quarter instead of 1-2 years as I was expecting.