3 ms·
Both Tesla and SpaceX are insanely profitable.
by adastra22 2y ago
Both Tesla and SpaceX are insanely profitable.
- rstuart4133 2y agoTesla was very profitable. Gross Margin is 14% now of revenue now. 1/4 of their their $8B profit is emissions credits. That's not shabby and they have lowish debt ($20B). But it isn't what I'd call insane. Google's gross margin is 58%, profit is $349B.
- adastra22 2y agoI'm not sure why you're comparing the gross margin of a car company to an internet company. General Motors has a gross margin of 10%. Ford's is 7%. Historically Tesla's was ~25%, but yeah it's fallen a bit since I last looked.
- rstuart4133 2y ago> I'm not sure why you're comparing the gross margin of a car company to an internet company. Because the benchmark set was "insane". I agree no car company gets insane profitability levels. Tesla was never insanely profitable by most metrics.
- verzali 2y agoSpaceX is not insanely profitable. Starlink might become so, but it isn't yet.
- adastra22 2y agoOnly because they're funneling every dollar they earn into Starship. But as Starship contributes absolutely nothing to current revenue, excluding those costs is the only fair apples-to-apples comparison. We don't know their exact costs because SpaceX is still a private company, but estimates are on the order of 60% profit margin across their business lines.