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Some other context As of Q3 2022, Tesla’s profit margins stand out significantly compared to its competitors: Gross profit per car: $15,653 Net profit per car
by hnburnsy 3y ago
Some other context
As of Q3 2022, Tesla’s profit margins stand out significantly compared to its competitors:
Gross profit per car: $15,653
Net profit per car: $9,574
In comparison, other major automakers have lower profit margins:
General Motors (GM): Gross profit per car of $3,818 and net profit per car of $2,150.
Toyota: Gross profit per car of $3,925 and net profit per car of $1,197.
Volkswagen (VW): Gross profit per car of $6,034 and net profit per car of $973.
Hyundai: Gross profit per car of $5,362 and net profit per car of $927.
- kstrauser 3y agoWhat's the difference between gross profit and net profit?
- stephenitis 3y agoGross profit is the money a company makes after subtracting the cost of producing its goods or services. Net profit is what remains after all expenses, like operating costs, taxes, and interest, are deducted from the gross profit.
- kstrauser 3y agoAh, so gross profit is kind of like "this is how much we profited off this specific car", and net profit is "this is the average of how much we profited off all these cars"?
- yread 3y agogross profit is "money we got for selling this car" - "all per car expenses". Net profit is - "all the other expenses a company has"
- mkipper 3y agoYou seem to know where to find these numbers (I don't), so do you know how that stacks up with luxury car manufacturers? Most of those companies do compete with Tesla, but the price range of a Tesla ($40k to $90k for most models) lines up much more closely with Audi and BMW than any of those companies. I'd imagine that those companies would have higher gross margins if they didn't sell any cheap models or trims levels.
- hnburnsy 3y agoHere is operating margins of car companies, it puts Tesla behind BMW but ahead of Mercedes... https://companiesmarketcap.com/automakers/automakers-ranked-by-operating-margin/ https://companiesmarketcap.com/automakers/automakers-ranked-...
- TheAlchemist 3y agoAny particular reason why you are looking at Q3 2022, other than the fact that 2021-2022 were a complete anomaly, due to Covid shortages and impacts ? It's all downhill from there - Tesla used to include their margin charts in the shareholder's deck, until Q4 2023. Care to comment why ? We all know why. Let's wait 3 weeks and find out what Tesla margins are in Q1 2024.