> 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 artic

> 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