Tesla Profit Margins

Just look up the margins on Tesla’s cars vs EVs from other manufacturers. For example, Tesla’s net profit margin in Q1 2023 was 13%, meanwhile Ford is hoping that their electric vehicle division can get to 8% net profit by 2026 (they currently lose money on them)

Tesla has 20-30% gross margins on the Model S and X. They're profitable cars (though the company is not, due to heavy capital investments).Other EVs do seem to be sold at a loss though, because their main purpose isn't to be profitable on their own, but to enable more sales of larger ICE vehicles (by meeting fleet economy standards) that are much more profitable.

Tesla only shows one of two things1) Their profit margins are significantly lower than what traditional manufacturers are willing to sustain for the luxury car market2) The traditional manufacturers were bad at calculating the profit margin of a luxury EV

Tesla's Gross Margin is 15%, the same as Ford's. They make a sizable profit on every car. R&D etc is what turns that profit into a loss.

Tesla is operating at a loss, but Model S and Model X are sold at a high margin comparable to other cars in their category. Source: share holder letters.

I haven't researched specifics on Tesla, but typically bigger => larger margins in the automotive world. Manufacturers weren't thrilled when the Obama administration pushed for higher fuel economy after the bailouts. The margins on the small cars were much lower than on trucks and SUV's.For example, Ford's F-150 line is worth an incredible amount of money."Morgan Stanley analyst Adam Jonas has estimated that the F-Series, which includes F-150 and Super Duty tr

The revolution is in manufacturing and vertical integration: you have to look at margins. Tesla’s operating margin was 19.2% in Q1, and is apt to rise. Very few other companies even make a profit on their EVs, and none that do are anywhere close to Tesla’s margins, to my knowledge. This means that nominally competitive electric cars aren’t. In principle Tesla could squash its pure EV competitors by selling below their cost of production, and any legacy auto company transitioning to EVs will be i

Those points are neither here nor there.Tesla has pretty much the best margin in car industry, even when comparing their pure EV production to traditional ICE cars.Pretty much all other companies, including Ford, loose money on EVs. Some loose more than others.The difference between Ford pay and Tesla pay is not even close to explain the profitability gap.It's more about Tesla making way more cars and therefore paying less for components and batteries and raw materials.It

The margins on Tesla's cars are actually very high, but Tesla is pouring an unimaginable amount of money into R&D and infrastructure right now. Gigafactories, superchargers, service centers, etc. Those are all things that VW doesn't have to worry about because they are already established.Saying that Tesla sells cars at a loss is just another case of sour grapes by people trying to discredit what Tesla has done. Tesla could give up on the Model 3 right now, stop building superch

The Ford F150 makes a gross profit margin of $10,000 to $13,000/vehicle. It sells 800,000 F150s each year, for a profit of $8 billion or more on just the F150s. By the way, F150s sell for about the same as the Model 3.Porsche has gross margins of $18,000 to $23,000 on its vehicles, which are comparably priced to Tesla's other models.Really, if you drill down into the actual numbers, you'll see that Tesla isn't significantly more profitable than other car makers