I'm not defending the way they amortize, but if you don't take it in to account, it can lead to some poor conclusions. Tesla R&D is so ridiculously efficient.

I'm not defending the way they amortize, but if you don't take it in to account, it can lead to some poor conclusions. Tesla R&D is so ridiculously efficient. I wouldn't be surprised if a Model 3 from scratch costs traditional auto companies an order of magnitude more to develop. So the first EV models inevitably come out, amortizing a large amount of R&D over a limited run, and it looks like an absolute disaster for margins. It doesn't necessarily mean things aren't going well - although it certainly can!