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>It means legacy auto needs to smarten up about their sales process. No, it means their gross margins are necessarily lower because of the way the accounting w
by itsoktocry 6y ago
>It means legacy auto needs to smarten up about their sales process.
No, it means their gross margins are necessarily lower because of the way the accounting works when manufacturers sell to dealers.
Anyway, gross margins are not profit margins, so why should they try to maximize them?
>Operating profit with no growth
Let me give you the 101 on base rates: Tesla is small (sub 1% market share), so therefore big growth numbers as a % is easy. VW is massive, and therefore high % growth numbers are hard.
VW made $12B in profit last year.
>The comparison with Amazon is because not many companies have year after year of CAGR in the realm of what Tesla has achieved.
Nonsense. No car companies have, lately, maybe. But plenty of companies have grown as fast or faster than Tesla. Their last 3 years of revenue are: $25B, $28B, $31B. Good, but nowhere approaching 50% CAGR.