Re:Tesla Bonds Are in Free Fall
by paulpauper on Wednesday March 28, 2018 @06:16PM
(#16702520)
The losses are due to the capital outlays for factories, bot because the car business is unprofitable. Tesla has 20% margins on their sales, which is twice that of GM and Ford.
GM and Ford happen to make (lots of) money even after they pay for the cost of building/selling/supporting their products. That said, Tesla's gross margin in the latest quarter was 13.34%[1], GM's was 13.29%[2] and Ford led the pack at 15.34%[3].
[1] https://ycharts.com/companies/TSLA/gross_profit_margin
Re:Tesla Bonds Are in Free Fall
by AstralStorm on Thursday March 29, 2018 @06:40AM
(#16705937)
The real question is, would Teslas still sell well enough at a higher margin...
You mean, because they have priced them below the price that would clear their ability to produce, and have either inadequate resources or inadequate competence to scale production to meet the quantity demanded at the current price. So, they are failing at either production or pricing or both, and losing money because of it.