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>"Tesla makes money on every car sold (as they actually have a gross profit)" You knock people for financial ignorance, then say this? You realize that gross
by forgetsusername 11y ago
>"Tesla makes money on every car sold (as they actually have a gross profit)"
You knock people for financial ignorance, then say this?
You realize that gross margin is sales less cost of goods sold? And that cost of goods does not include things like paying your employees, interest on debt used to expand, the cost of running the factories, etc etc?
I come from a retail environment where our gross margin is typically 25-35%, while our profit margin is about 2-4%. So saying that Tesla "makes money on every car sold" simply because they have "gross profit" is about as fast and loose with "profit" as you can get. Of course, nobody in the finance world would think that...