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unfortunately for the legacy car manufactures, like so many legacy companies. They have a huge amount of administrative bureaucracy and expense. A new company

unfortunately for the legacy car manufactures, like so many legacy companies. They have a huge amount of administrative bureaucracy and expense. A new company doesn't have decades of bureaucratic bloat. You can see this when you compare Toyota, Ford, and VW's profits on EV's versus Teslas. Nearly everyone else's profits are less than $1000 in profit per car. (Some are even negative) https://www.notebookcheck.net/Tesla-vs-Toyota-BYD-VW-and-Ford-profit-margins-get-visualized-as-GM-trails-it-four-to-one.691126.0.html https://www.notebookcheck.net/Tesla-vs-Toyota-BYD-VW-and-For... Meanwhile Tesla's are nearly $10,000 profit per car. BTW, I still wouldn't invest in auto companies and don't think Tesla's stock is gonna grow to the moon, because apparently when everyone makes EVs there's going to be serious issues with being able to make that many batteries via rare earth materials. But I'm no expert.

gamblor956 3y ago
Tesla sells luxury cars, so it should have a high profit per car. Its luxury competitors also make a lot of money per car. For comparison: Ford's profit per F150 sold starts at $10,000, and that doesn't take into account upgrades. Their margins on F250 and F350 sales are even higher. Their profit margin is dragged down by the many low-cost cars they sell in other countries, since unlike Tesla they serve the entire market and not just a small slice of it. Mercedes Benz (21.7%) and Mazda (21.9%) actually had higher profit margins than Tesla did (<20%) for the past calendar year.
- signatoremo 3y ago
  > Tesla sells luxury cars, so it should have a high profit per car. Its luxury competitors also make a lot of money per car. You are commenting on a very article that reports Tesla moving away from luxury toward mainstream market. The latest gross margin number is after they slashed price substantially in Q1. > Their profit margin is dragged down by the many low-cost cars they sell in other countries, since unlike Tesla they serve the entire market and not just a small slice of it Those low margin vehicles contribute to Ford’s success. Without them there is no Ford. They help with the economy of scale, without it Ford’s cost would still be higher. They help satisfy the dealer network, without it Ford wouldn’t be able to push their higher margin trucks. And so on. Worth mentioning that Ford did abandon certain segments in the past, such as Ford Fusion or Ford 500. > Mercedes Benz (21.7%) and Mazda (21.9%) actually had higher profit margins than Tesla did (<20%) for the past calendar year. Wrong. Tesla’s gross margin for 2022 is 25% [0]. This article discusses Tesla going down market. [0] - https://finbox.com/NASDAQGS:TSLA/explorer/gp_margin https://finbox.com/NASDAQGS:TSLA/explorer/gp_margin

gamblor956 3y ago

Tesla sells luxury cars, so it should have a high profit per car. Its luxury competitors also make a lot of money per car. For comparison: Ford's profit per F150 sold starts at $10,000, and that doesn't take into account upgrades. Their margins on F250 and F350 sales are even higher. Their profit margin is dragged down by the many low-cost cars they sell in other countries, since unlike Tesla they serve the entire market and not just a small slice of it. Mercedes Benz (21.7%) and Mazda (21.9%) actually had higher profit margins than Tesla did (<20%) for the past calendar year.

signatoremo 3y ago
> Tesla sells luxury cars, so it should have a high profit per car. Its luxury competitors also make a lot of money per car. You are commenting on a very article that reports Tesla moving away from luxury toward mainstream market. The latest gross margin number is after they slashed price substantially in Q1. > Their profit margin is dragged down by the many low-cost cars they sell in other countries, since unlike Tesla they serve the entire market and not just a small slice of it Those low margin vehicles contribute to Ford’s success. Without them there is no Ford. They help with the economy of scale, without it Ford’s cost would still be higher. They help satisfy the dealer network, without it Ford wouldn’t be able to push their higher margin trucks. And so on. Worth mentioning that Ford did abandon certain segments in the past, such as Ford Fusion or Ford 500. > Mercedes Benz (21.7%) and Mazda (21.9%) actually had higher profit margins than Tesla did (<20%) for the past calendar year. Wrong. Tesla’s gross margin for 2022 is 25% [0]. This article discusses Tesla going down market. [0] - https://finbox.com/NASDAQGS:TSLA/explorer/gp_margin https://finbox.com/NASDAQGS:TSLA/explorer/gp_margin