. According to Zach Kirkhorn, Tesla’s chief financial officer , “For Q4, specifically, automotive gross margin, excluding credits, increased to 29.2%, which is our highest yet. We do expect to continue to see stronger operating margins as we grow our volumes and improve operating leverage. Over a longer term horizon, we are quite optimistic about the expansion of margins. From the hardware side, we are aggressively driving manufacturing innovations and operational efficiency to reduce cost.
Keep in mind that the least expensive Tesla, the Model 3, starts at around $45,000, and the Model Y lists for almost $60,000. It quickly becomes apparent that with a COGS of $36,000, Tesla is one of the most profitable car companies in the world. So much for the “you can’t make money building electric cars” trope we have been hearing constantly for the past 10 years. Once again, conventional wisdom is not all it’s cracked up to be.
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elons_world I love Tesla care🚗🔌🔋🚗🔌🔋🚗🔌🔋
elons_world Only Elon sir🎉🎉🎉
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