Tesla's profit per vehicle beat the world's most valuable car brand eightfold

[Redaktion]

Toyota made about US$1,200 per vehicle sold last quarter, and Tesla made eight times that, beating Toyota's net profit margin for the first time since it went public. Teslas cost about US$36,000 to make but sell for US$10,000 more on average, potentially beating the heretofore highest per-vehicle margins of Mercedes.

https://www.notebookcheck.net/Tesla-s-profit-per-vehicle-beat-the-world-s-most-valuable-car-brand-eightfold.667135.0.html

[indy]

Within 3 years all major manufacturers will have Electric vehicles released in production and only ramping up from there. Tesla has....an angular truck, and a possible Trailer, neither of which have the YEARS of testing on actual roads with actual loads before serious contenders bite.

This is make-it-or-break-it time for Tesla. They had a jump start, but their competition isn't sitting idle.

When Tesla has 40+years of #1 selling vehicles in multiple markets and segments, at that profit level, I will be very impressed. But given they are reducing build cost but not sale cost, things don't look rosy.

I'd pick up a Toyota well before a Tesla. I just trust the brand "7" times as much. Market cap means nothing to me.

[JThom]

T is just riding the market trend. Can't blame them. Consumers are still buying them so they'll keep pricing them sky-high.

[Puppy]

It just shows that Tesla sells like a status symbol or political statement, while Toyota sells cars to serve the purpose of being a car. No market for functional items has a profit margin as high as claimed by Tesla, so either they are lying or they are in the business of glass beads, not cars

[anan]

As I understand Tesla has a leg up in manufacturing efficiency. It costs them 35k to build a model 3 and they sell for 46k. As a consumer you would want to by a product with the best value. High manufacturer margin does not bring value to the customer. But if a competitor sells a product in the same category for the same 46k price but it costs them 45k to build then Tesla is competitive at these margins. Of course that is if other things are equal. But they are not. Tesla has a reputation of shoddy build quality. Toyota had serious problems with their first halo EV. Teslas are more efficient and have a better perceived technological package.

[heffeque]

In part it's because Tesla is actually handing the vehicles to their customers 3 to 7 months after purchase.

Most car manufacturers in Europe are handing them to the buyers between 6 and 20 months after purchase.
That's insane.

[Thomas Kromah]

I suspected this all along. Like all Q followers, Elon is another con man. He has just been a fool all Tesla owners.
I am glad to not be one of his victims. Thank God there are other electric car manufacturers. And even for them, if they don't make their prices reasonable, I am OK with my gasoline cars.

[Thomas Kromah]

I suspected this all along. Like all Q followers, Elon is a con man that has fooled all Tesla owners. I am glad not to be one of his victims. That's why I am not enthusiastic about electric cars until their prices become realistic.

[Edwards C Fox]

As a single mom, i was in a toxic relationship, i did not notice this dude was just cheating on me even without me cheating back. I made it too obvious i loved him with all my heart and he was just toying with all my emotions.
Cut it short, i noticed he was acting very fishy and i was able to work two jobs in order to place my purchase on JOSE, got to know he was cheating with my sister, i'm hurt but i am doing great same time,. I only just find out last week on this scandal.

I can tell you, trust the App and i was able to break my toxic relationship with this Asshole. God bless you JOSE, i will always recommend your service to others.

WWW . HACKERSPYVILLE . COM

[Abraham]

This is why I will never buy a Tesla because it is over priced compared to its competitors.

[Dar]

As an actual Tesla Model 3 AWD LR owner,

First things first: I was not planning to buy Tesla, but my car broke, the repair shop took 1 month to repair it, and when they did, they actually wrongly installed the belt and it killed my engine. I was pissed off.
As I was browsing their website (Tesla), sales started the chat. After 30 minutes they offered me a 7K discount for a new car that was already there, ready to be delivered. True, it was a basic one, no option, but I would not make any anyways. So I made a leap to the unknown. Must say, the experience is very good. I still miss V6 or V8 engine sound, but everything else is great.

So I must say, that it is not Tesla's fault for others not being able to optimize their production, marketing, and sales costs.

The perceived quality of my car is really good (Shangai production). I was very afraid that there will be some badly assembled parts or noise, but for the time being, it just works as advertised.

Where they save money is mostly in marketing ( 1/10 of traditional car makers or even less), and their sales (they do not share the profit with car dealers, they are the ones selling their cars to you directly.
And they streamlined their production to the point where it is very cost-effective, and they keep working on that (similar to how software development is done these days, with small incremental improvements that happen much more frequently (DevOps)):

So, there you have it, remove the costs in those three areas and you will get Tesla's numbers.