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freaq

Ars Scholae Palatinae
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  • #29
    Crito said:
    I'm rooting for Tesla, but if they don't get the Model 3 production volumes higher & costs significantly lower in the next year, they're going to have a really hard time (after a barn-burner of a fourth quarter, which'll make year-on-year comparisons all the rougher). Most other automakers have a natural hedge with combustion-powered vehicles, Tesla has no such safety blanket.

    Edit:
    To put some numbers to it: gross profit margin on Tesla's automotive sales was ~18% last quarter (in the ballpark of other luxury car manufacturers). Using the base Model S price of ~$75K, that works out to ~$14K/car ... less $3.75K->$7.5K and their margins get pretty abysmal. Lots of simplifying assumptions in terms of mix/upgrades/etc., but given they're still burning cash most quarters, this is going to hurt.
    Click to expand...

    tesla's prices are just going to go up, tesla isn't going to "keep the same price" and take a cut.
    if you look you can also see that the "real" price is shown partially in the side-tab and also takes into account local incentives (like there were in California for example)

    in short, tesla won't suffer margins, but they may suffer from lower demand.
     
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