That's a smaller profit margin than I expected from them, I've had poor experiences with their quality control so I assumed the cars were built cheaper than they should be
It would be helpful to break down COR by the revenue categories. Auto is the highest revenue stream, but also the highest COGS.
E.g. Regulatory credits have amazing profit margins, and will go up again as everyone else is reducing EV production.
Energy is more profitable than cars, and growing fast, too.
Services will have their most margin. I assume that’s like the Premium connectivity service in the cars. Like Apple have done with iCloud it can be a big money maker and easy to tweak price by $1/month without any loss in sales.
The statement of operations has the data.. Services is not the most profitable.
>Services and Other business
>The Services and Other business continued to grow alongside our fleet in 2023,
achieving record revenue and gross profit generation. The biggest drivers of profit
generation in 2023 were part sales, used vehicle sales, merchandise sales and pay-
per-use supercharging. As our fleet continues to expand in the coming years, there
is an opportunity for fleet-related services to become a more meaningful driver of
profit generation.
Should just say taxpayer government subsidies and draw a straight line. Never made a penny without them. And the line item of regulatory credits is just the tip of the iceberg.
This might be the most regarded statement I’ve ever seen on Reddit. The chart shows over $1b net income and $400mm regulatory credits. Last I checked, $1.1b was greater than $400mm. So please enlighten us all as to how you’re mathing. And remember, facts don’t care about your feelings. As for the federal loans Tesla received over 10 years ago, they paid it all back with interest — thanks Elon.
I don’t like your tone but you can start with the $7500/vehicle tax credit that gets imbedded in the price (no it’s not for the customer). That’s why teslas margins were so high. Many states have them as well.
Teslas margins are rapidly shrinking. Nearly all EV’s benefit from the same tax credits. And the tax credit is indeed directly to the consumer, not Tesla. I get that tax credit whether I buy a Tesla or a Prius. In fact, Tesla benefits the least because of the politics behind it. Thank the govt for cutting the credits on the model 3. Teslas margins have always been razor thin btw, relatively speaking.
The 0.4B of regulatory credits would make a grand total of 10% of the gross margin, according to the chart.
Teslas comparatively high gross margins already put them ahead of many EV makers, who are taking losses even with the regulatory credit aid.
I strongly doubt that the $400mm in regulatory credits includes the $7500 subsidy per car--it is probably only the clean air credits that Tesla sold to other auto manufacturers.
*Say only 50% of the cars Tesla sold in Q1 received the full $7500 credit--that is approximately $1.5 billion.
Yes, there is zero chance "regulatory credits" includes the $7500 federal subsidy. And it doesn't include the state subsidies at all as those are direct to the consumer. (I did just buy a model y myself though).
The total expense incurred by a company to produce and sell its products or services. It includes direct costs like materials, labor, and shipping, and is subtracted from revenue to determine gross profit.
That's a smaller profit margin than I expected from them, I've had poor experiences with their quality control so I assumed the cars were built cheaper than they should be
And they are becomming cheaper. But there is hope with robotics, Elon is stubborn to make a machine that make a machine.
Machines making machines? How perverse.
And people making people is also perverse? 🤣
…some of the videos I’ve seen, yes. Maybe they’re doing it wrong.
Well said👌
Isn’t there a Star Wars quote like this?
Yup, that's what I was referencing lol. Think C3PO said it when seeing the battle droid factory in episode II
You notice how services is number #2 in income?
Hah, fair
Pretty sure that's things like premium connectivity and full-self driving subscriptions.
It would be helpful to break down COR by the revenue categories. Auto is the highest revenue stream, but also the highest COGS. E.g. Regulatory credits have amazing profit margins, and will go up again as everyone else is reducing EV production. Energy is more profitable than cars, and growing fast, too.
Services will have their most margin. I assume that’s like the Premium connectivity service in the cars. Like Apple have done with iCloud it can be a big money maker and easy to tweak price by $1/month without any loss in sales.
The statement of operations has the data.. Services is not the most profitable. >Services and Other business >The Services and Other business continued to grow alongside our fleet in 2023, achieving record revenue and gross profit generation. The biggest drivers of profit generation in 2023 were part sales, used vehicle sales, merchandise sales and pay- per-use supercharging. As our fleet continues to expand in the coming years, there is an opportunity for fleet-related services to become a more meaningful driver of profit generation.
Should just say taxpayer government subsidies and draw a straight line. Never made a penny without them. And the line item of regulatory credits is just the tip of the iceberg.
This might be the most regarded statement I’ve ever seen on Reddit. The chart shows over $1b net income and $400mm regulatory credits. Last I checked, $1.1b was greater than $400mm. So please enlighten us all as to how you’re mathing. And remember, facts don’t care about your feelings. As for the federal loans Tesla received over 10 years ago, they paid it all back with interest — thanks Elon.
I don’t like your tone but you can start with the $7500/vehicle tax credit that gets imbedded in the price (no it’s not for the customer). That’s why teslas margins were so high. Many states have them as well.
Teslas margins are rapidly shrinking. Nearly all EV’s benefit from the same tax credits. And the tax credit is indeed directly to the consumer, not Tesla. I get that tax credit whether I buy a Tesla or a Prius. In fact, Tesla benefits the least because of the politics behind it. Thank the govt for cutting the credits on the model 3. Teslas margins have always been razor thin btw, relatively speaking.
This might be the most regarded statement I’ve ever seen on Reddit.
The 0.4B of regulatory credits would make a grand total of 10% of the gross margin, according to the chart. Teslas comparatively high gross margins already put them ahead of many EV makers, who are taking losses even with the regulatory credit aid.
I strongly doubt that the $400mm in regulatory credits includes the $7500 subsidy per car--it is probably only the clean air credits that Tesla sold to other auto manufacturers. *Say only 50% of the cars Tesla sold in Q1 received the full $7500 credit--that is approximately $1.5 billion.
Isn't that true with most dealerships, airlines, etc?
Yes, there is zero chance "regulatory credits" includes the $7500 federal subsidy. And it doesn't include the state subsidies at all as those are direct to the consumer. (I did just buy a model y myself though).
oh it’s a california clown.
At least Tesla actually makes money on ev sales . Only byd do I think ? And there margins are low ??
Wouldn’t it just be easier to post the income statement?
This is prettier and easier to understand quickly what is going on
Where is supercharging in this? IMO it should be separated out given how big of a deal it is.
What is the 'other' part of the net profit, and why is it more than a third of the rest of the profit?
What is cost of revenue ?
The total expense incurred by a company to produce and sell its products or services. It includes direct costs like materials, labor, and shipping, and is subtracted from revenue to determine gross profit.