Re:Tesla Q3 2021 Earnings
by kaesar14 on Wednesday October 20, 2021 @05:00PM
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What current margins? At what scale? Toyota has a best-in-class 6% profit margin, substantially better than its competitors sitting at 3%, and earns 20 billion dollars. Even at the most optimistic margins Tesla is vastly overvalued.
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Gross margins. Tesla is scaling right now and continuing to innovate on the tech side.
Ok, so what margin do you see justifying their valuation? 10%? 15%? The margins of a company like Microsoft who makes their money on software (30%)? Even if you used that last figure, they'd more than 80x over valuation on current earnings. This is a car company. There are fundamental limits on how much money you can make.
Didn't they say their operating margin is 14.7% and automotive is indeed close to 30?
Those include massive subsidies by the government.
Wasn’t the non-subsidy margin only like 5% less?