05-11-2017, 01:44 PM
(05-11-2017, 12:42 PM)Au165 Wrote: The only time anyone actually believes they lose money on cars is when they try factoring administrative costs and R&D, but that spans other segments than simply the motor side of the company and can't really be applied to a per unit basis.
Well, admin costs and R&D is part of building a car. While some of that is growth and other initiatives, you are also ignoring massive tax credits they've been getting to subsidize their vehicles, both directly to the company and indirectly to the consumer. The tax incentives alone make up at least half of that "25% gross margin".
If I take Ford and GM, with R&D and SG&A 14-15% of sales....Obviously they have a much larger base to spread those costs, but factor that in and a generous 10% tax incentive and you realize Tesla doesn't make a profit on its cars (and we're talking high-end luxury, which has much higher margins than Ford and GM average fleet).
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