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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 dkrich on Thursday August 03, 2017 @10:51AM (#14920057)
For a luxury car, that's not really good. As you move down-market, margins only get lower, so you have to rely on volume to make significant amounts of money. If people don't buy Model 3's by the hundreds of thousands every quarter, they are going to have problems squeezing profits from this car.
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Re:Tesla Burns Through Record Cash to Bring the Model 3 to M... by toomuchtodo on Thursday August 03, 2017 @11:24AM (#14920373)
Legacy luxury margins.

BMW: 8%

Mercedes: 11%

Audi: 7%

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Re:Tesla Burns Through Record Cash to Bring the Model 3 to M... by kgwgk on Thursday August 03, 2017 @11:47AM (#14920569)
Gross margins are significantly higher than that (maybe below Tesla's 25%, but they sell many cars cheaper than the model S).
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Re:Tesla Burns Through Record Cash to Bring the Model 3 to M... by dkrich on Thursday August 03, 2017 @01:51PM (#14921933)
So a company that has widening losses claims a 25% margin on its cars. Sounds like some interesting accounting is at work.

Ask Bob Lutz whether margins are greater on a Chevy Camaro or a Cadillac ATS (exact same platform, one sells for about $10k more than the other).

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Re:Tesla Burns Through Record Cash to Bring the Model 3 to M... by dkrich on Thursday August 03, 2017 @02:10PM (#14922139)
Seems like you're missing the point. If a set of parts costs you X, and you can sell it as one product for 2X and as a different product for 3X, which one yields better profits?
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Re:Tesla Burns Through Record Cash to Bring the Model 3 to M... by toomuchtodo on Thursday August 03, 2017 @02:18PM (#14922206)
We're not talking past each other. A Cadillac and a Chevy are much closer to parity than a Model 3 and a Model S/X (considering both parts and manufacturing techniques). I don't know what the Model 3 margins are yet, but I'm confident they're going to be above 15%.
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