4 ms·

Gross margins. Tesla is scaling right now and continuing to innovate on the tech side.

• kaesar14 5y ago
  Ok, so what margin do you see justifying their valuation? 10%? 15%? The margins of a company like Microsoft who makes their money on software (30%)? Even if you used that last figure, they'd more than 80x over valuation on current earnings. This is a car company. There are fundamental limits on how much money you can make.
  • dd36 5y ago
    Current earnings aren’t really relevant when they’re poised to continue growing fast.
  • rio517 5y ago
    Didn't they say their operating margin is 14.7% and automotive is indeed close to 30?
    • kaesar14 5y ago
      Those include massive subsidies by the government.
      • dd36 5y ago
        Wasn’t the non-subsidy margin only like 5% less?