EZZ

The statement from the so called expert was that they lose money on every car they sell which is utter bull***** and can be easily verified by financial statements. Again, they are breakeven simply due to rapid expansion of infrastructure, aggressive spend on R&D, and supporting their loss making solar business but yes, they do make a crap ton of money for every car they sell.

mmarshall

^^^^^^There is an old saying.........."Figures don't lie, but Liars Figure".

situman

Operating cash flow can be manipulated so easily. Not worth the paper its printed on. Financial statements are summaries, they will not break out car line by car line, its cost and revenue. Even if they do, it is at management's discretion at how to allocate some of the operating costs as long as they can come up with a justification.

EZZ

These are audited statements so I disagree with you. The operating cash flows are positive meaning they do generate money by selling cars. The P&L has non cash items like depreciation and deferred revenue but the cash statement can't really be hidden. Tesla is one of the most scrutinized companies in the world given the amount of short sellers. The most powerful hedge funds couldn't find any shenanigans with the financials so unless you have proof, I tend to believe that they do make money on cars they sell.

situman

You realize all they have to do is delay payments to vendors and their cash flow magically increases right? Or delay investments and purchases or change capitalization thresholds. Audits are not absolute, they provide reasonable assurances. This is getting off topic.

EZZ

True but cash flow has been consistent for the last 5 quarters so those shenanigans are hard to pull off for such a long time. I'm just relating this to Tesla of course. I'm reasonably confident their financials are in good standing as I've been a shareholder for awhile now and I really dig into investments that I have a position on.

bitkahuna

iTrader: (20)

ok guys, enough debating tesla's financial statements.

situman

Well to be fair, talking about cutting costs is related to financial statements in every way.

Toys4RJill

I thought this thread was great. I haven’t seen any proof Tesla is making much profit...right from the horses Musk The profits are around 1% so he says.....

EZZ

Seems like the Chinese made Model Y will be making TONS of cash on a per unit basis. I guess EVs can be profitable

Tesla’s China Model Y has 29.4% gross margin: report

Posted on January 5, 2021Tesla’s new Giga Shanghai-produced Model Y has a 29.4% gross margin, according to Guosen Securities, who analyzed the cost of building the car compared to its selling price.

According to the Shenzhen, China-based financial firm, Tesla’s China Model Y only costs ¥237,930 (USD 36,852) to produce. However, its selling point gives Tesla a 29.4% gross margin with a price of ¥339,900 (USD 52,646.25). Due to the current demand for the all-electric crossover that just started being produced at Giga Shanghai, Tesla has plenty of room to come down. The company will likely do this after the demand is sustained for several months because the automaker did the same thing with the Model 3 after its initial gross margin was also turning Tesla a tasty profit.


Tesla’s gross margins for the Model Y are around three-times the industry average, which hover between 8-10% for luxury cars. This means Tesla is making around three times the amount of money per unit compared to any other carmaker. While demand continues to remain healthy for Tesla’s cars based on 2020 sales figures, the company is churning plenty of profitability from its Giga Shanghai-produced cars.

In June 2020, it was reported that the Model 3 SR+ that was delivered by Tesla in Q1 had a gross margin of 39.37%. This means that with its ¥271,550 price tag (USD 42,059.69), the vehicle actually cost ¥188,700 to produce (USD 26,653), Sina indicated.

The price of the Model 3 has decreased since the June 2020 report. Tesla’s base Model 3 in China now has a price of ¥249,900 (USD 38,706.38). This would be around a 24.5% gross margin if the cost to produce hasn’t changed. However, it likely has, and even if it hadn’t Tesla is still turning a profit that is more than 2.5 times the industry average.

In late December, Tesla China VP Grace Tao indicated that the company’s localization supply goal had been “basically” achieved. This effectively closed the door on the Model 3’s prices being reduced, which had occurred five times in the vehicle’s first year of availability in China. Once was due to the company’s desire to reach government incentives’ qualification, as the SR+ variant was reduced to under ¥300,000.

Reports from China indicate that demand for the new Model Y is healthy, and showrooms in the country with the largest automotive market were filled with prospective buyers just after launch.
Tesla showrooms get volunteer help amid Made-in-China Model Y launch
China has been one of Tesla’s main contributors to its 500,000 vehicle goal, which the company announced it accomplished last weekend. While exact figures are unknown, the Tesla Model 3 has dominated Chinese EV sales figures for all of 2020. Data from the EV Sales Blog indicates that the Model 3 has sold 116,119 units in China in 2020 and has been battling with the GM-backed Wuling HongGuang Mini EV, which is the only close competitor to Tesla’s affordable sedan so far.

What do you think? Leave a comment down below. Got a tip? Email us at tips@teslarati.com or reach out to me at maria@teslarati.com.

Toys4RJill

WOW! Tesla stock is on fire

mmarshall

I'm not sure if this will tie in with the thread or not, but, according to the latest stats, Musk just overtook Jeff Bezos as the world's richest man.

https://www.cnbc.com/2021/01/07/elon...ff-bezos-.html

Allen K

iTrader: (4)

My portfolio is very happy with what's happening @ TSLA right now

LeX2K

This is a good summary

situman

I'm watching for trigger warnings to sell. When every grandma in the supermarket talks about Tesla or news outlets predicting Tesla $1000000000000 a share, I'm out. Right not there are still enough skeptics to keep the momentum going.