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Margins are highest in the US market (especially considering ZEV credits). Model mix may differ, but they’re shipping their lowest end models to Europe and Chin
by new_realist 7y ago
Margins are highest in the US market (especially considering ZEV credits). Model mix may differ, but they’re shipping their lowest end models to Europe and China; those would be more profitable to sell in the US.
- reitzensteinm 7y agoI don't think that's true. You can see real time stats for the Netherlands, Norway and Spain on this site: https://eu-evs.com/ https://eu-evs.com/ The mix look pretty healthy so far (I would ignore October, which hasn't had meaningful units yet).
- Retric 7y agoZEV credits only apply to 11 states, they don’t apply to the sales to the rest of the US. https://www.ucsusa.org/resources/what-zev https://www.ucsusa.org/resources/what-zev Presumably, Tesla is prioritizing those states rather than the entire US market.
- zaroth 7y agoPlease don’t copy/paste answers. Tesla does not publish an ASP breakdown by market AFAIK. But what we do know is Tesla always sells highest margin SKUs first into new markets and then eventually sells down-market over time. In their Q3 report they said “Despite reductions in ASP of Model 3 as global mix stabilizes, our gross margins have strengthened.” In other words, their global deliveries benefit from higher ASP while they were initially delivering only the fully loaded models. We can also look at base price of the SR Model 3 and see a basic case for higher ASP internationally, but it’s a very tricky analysis to try to back out taxes and transportation costs.