Quote:
Originally Posted by Remonster
I’m sure nobody at BMW will mind me taking this thread off topic since they are rightfully being raked over the coals over this embarrasing and hideous concept, but...
Tesla’s gross profit margin on Model 3 is currently over 20% according to their latest quarterly earnings report in October which is huge. It’s a very profitable car for them now, not so much in the beginning of production but your data us outdated. They were making less than 5% for a while but have been able to push profitability up rapidly.
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Accounting tricks being what they are, just straight math shows, bearing that most of Telsa's $11.6B in debt is coming due in 36 months, it needs to build approximately 8,000 Model 3 per week at 20%
gross profit margin on the Model 3. Shareholders generally prefer
net profit numbers. It has one plant facility manufacturing three (3) different models of cars. The Numi plant was capable of 500,000 units per year, GM/Toyota built 450,000 at peak production of just a single model car. Yup, Tesla is adding onto the plant, but that takes time and lots of money. My math aligns with Musk's stated goal of building 10,000 Model 3 per week, but he's only at 5,000 - 7,000 per week now.
So in simple math that's over 1.1 million Model 3 to be purchased in 3 years. It's possible over 1 million people will want a Model 3 in that time period and if there is company infrastructure to support that level of customer ownership without any privately owned and run dealership infrastructure. At some point not everyone wants the same car as everyone else has and other EVs are coming on line soon. GM has a bunch in the pipeline based on it's EV platform, and the Bolt is a lower-priced EV than the Model 3. GM has huge manufacturing capability. All interesting stuff.
Here's to hoping he can pull it off.