Tesla Model 3 gross margin

What Tesla’s Present Capital Expenses Tell Us About Future Depreciation

4 years ago Paul Fosse 0 Comments

Two of the big pieces of news on the Tesla 3rd quarter earnings announcement were that margins were up dramatically and the cost to build the new lines to manufacture the Model Y in Fremont is half the cost as the existing Model 3 lines, and that the cost to build the Model 3 line in China is 65% less than the same US Model 3 lines on a capacity basis. This means the cost for the Model Y line might cost half of what an existing Model 3 line costs, or it might mean that it costs the same amount of money but has twice the capacity — or some combination of the two.

More Nuggets From Tesla’s Q2 2018 Investor Conference Call

6 years ago Kyle Field 0 Comments

This quarter, the Tesla earnings call came on a day that I was already booked to basically spend all of my time slogging around Los Angeles, for CleanTechnica meetings with cleantech leaders as well as family engagements. That resulted in me listening in on the call from my Model 3 in some random neighborhood to the north of Los Angeles, which was surprisingly comfortable. I furiously took notes on the call while comparing them to the quarterly shareholder letter — while also chatting back and forth with our central team as we rallied around CleanTechnica Director & Chief Editor Zach Shahan in preparation for his line of questioning for Tesla CEO Elon Musk.

Tesla Model 3 Gross Margins

6 years ago Guest Contributor 0 Comments

In the ongoing tug-of-war between Tesla bulls and bears, one of the most controversial subjects these days is the gross margin that Model 3 can generate at a 5,000 cars per week production rate as well as the rate when production lines have fully matured. Bears had previously focused on whether Tesla could successfully ramp up Model 3 production quickly enough so as to hit the 5,000 per week production number before Tesla’s cash position becomes compromised, but with the company now consistently turning out thousands of Model 3s per week and evidence of additional gains, the emphasis has shifted to the profitability of those cars produced, and this is where the concept of gross margin becomes key.