Quote:
Originally Posted by ldjessee00
I do not think that is true. I think that they made a profit, put money in savings, and managed to build a new factory and tool it up, I believe from their filing that the Model 3 is profitable. Did I miss something?
In fact, I remember analysts saying that Tesla could not keep their high profit margins on each vehicle that they currently have, as it is so much higher than industry standard...
Unless you are assuming some accounting method that I have no idea about (which is possible, as I am not an accountant nor very knowledgeable about financial reporting of corporations).
|
Tesla lost $892 million in 2019.
The Model 3 does have a positive
gross profit. Gross profit only includes costs directly associated with making a Model 3 and nothing else. The problem with looking at gross profit is that it excludes a lot of fixed costs and overhead. Tesla averaged a gross profit margin of 16.2% over their last 4 quarters. That is better than some but worse than others. GM averaged 10.0, Ford 13.6%, Toyota 17.95%, Honda 20.5%. (Data from ycharts)
Yes, Tesla spent money building plants and tooling but that is an expected and ongoing expense for any auto manufacturer. On a normal design cycle a model is refreshed 3 years after start of production and redesigned at 6 years. So the Model 3 started production July 2017 and a refresh is due this year. An almost completely new version should be on sale in 2023.
Tesla is lagging the industry here. The Model S is 8 years old with only a minor refresh. The Model X is 5 years old without a refresh.
Quote:
Originally Posted by ldjessee00
|
That is gross profit not net profit.