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What your analysis is missing is the profit margin of each car maker. Never mind market share, what is Tesla's profit share? Does someone know this?
by pazimzadeh 6y ago
What your analysis is missing is the profit margin of each car maker. Never mind market share, what is Tesla's profit share? Does someone know this?
- quickthrowman 6y agoLast quarter TSLA reported earnings of 62 cents per share. That makes for a P/E ratio of 1321 at $695/share. (Per Thinkorswim)
- jeffbee 6y agoTesla's profit margins in the most recent quarter are typical for the industry, ~20% gross, ~10% EBITDA, ~2-3% after tax net margin. So their profit share of the industry is similar to their market share (i.e. very small).
- gamblor956 6y agoTesla's profit share is small enough that it is a rounding error. It is not the Apple of the automotive world. Quarterly profits for the most recent quarter (Q3 for most companies, Q2 for Honda): Toyota: $4.6 billion. Honda: $4 billion. GM: $4 billion. VW: $3.8 billion. Ford: $2.4 billion. Fiat: $1.4 million (not a typo, that is an m there.). In all cases, these profits were below their 2019 quarterly profits for the same quarter. Total of approximately 18.8 billion. Tesla: $331 million, or approximately 1.5% of the Q3 profit share. (Note that Hyundai had a loss and so is excluded from the profit share calculation. In all cases, these are global numbers. https://www.caranddriver.com/news/a34602700/auto-sales-profits-third-quarter-2020/ https://www.caranddriver.com/news/a34602700/auto-sales-profi.... For all automakers except Tesla and Fiat, profits are related to the sale of automobiles. Fiat's profit is related to a special one-time accounting event, and Tesla's profit, as with all of its previous quarterly profits, relates to the sale of credits to other automakers; Tesla has yet to have a profitable quarter based on the sale of vehicles.)