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A comment on Tesla Burns Through Record Cash to Bring the Model 3 to Market. Parent comment

Re:Tesla Burns Through Record Cash to Bring the Model 3 to M... by kgwgk on Thursday August 03, 2017 @10:24AM (#14919819)
Gross margin doesn't give you the full picture. SG&A (20% of sales) eats most of that margin and R&D is 12% of sales. I'm not sure how profitable Tesla could be cutting this additional costs without going too far (to avoid compromising the viability of the company).
[ Parent | on HN ]
Re:Tesla Burns Through Record Cash to Bring the Model 3 to M... by erikpukinskis on Thursday August 03, 2017 @06:53PM (#14924707)
If they were just going to churn out Model S and X, they wouldn't need to do much R&D. They could have a handful of people sit around and draw new headlight designs like the other car companies.
[ Parent | on HN ]