Because I am supposedly an over-the-top optimistic Tesla Motors certified apologist fanboy, I expect that Tesla Motors will achieve a 12% to 15% profit margin on the base version of the Model ☰ and possibly as much as 22% to 24% on higher trim levels with full options. Those who are instead members of the League of Lowered Expectations swear that the car will not be profitable in any way whatsoever for five or more years after release unless the base version of the car has 14" steel wheels, manual roll up windows, no large displays at all, no radio or air conditioning standard, no more than 120 mile range, no Supercharger access at all, and performance that rivals a 1984 Chevrolet Chevette. Which do you think is more likely?
I recon 8% to 12% with the base and 20% to 30% for the fully decked out one. Average would be about 15 to 20% if all are lumped in.
And don't forget that profit margins will increase over time as Tesla learns how to work out the kinks and batteries cost less as they improve. If they can manage to share more of the Model ≡ w/ the Model Y, then economies of scale will really kick in.
add the dealer discounts to the margins
Badbot, what "dealer discounts". Tesla has no dealers.
Jordan, Yes, that was his point.
and this bit should help margins,
Tesla has revealed that there are approximately 8,000 discrete parts in a Model 3.
Any internal combustion vehicle, even the cheapest sub-economy model, will have at least 20,000 discrete parts
"Tesla has revealed that there are approximately 8,000 discrete parts in a Model 3."
Really? Wow. Where did you learn this?
Thank you kindly.
Tesla Model 3 build plan is ambitious, but not impossible since Chinese automakers already did it [Report]
Sam Jaffe, Managing Director at Cairn ERA, describes his conclusion based on the report in an email to Electrek:
“It is not the most likely scenario, however. The reason is the nature of the product. The Tesla Model 3, which will comprise the majority of Tesla vehicles manufactured in the year 2018, is a significantly cheaper car to assemble than any of the Chinese cars made by the ten automakers surveyed in this study. Tesla has revealed that there are approximately 8,000 discrete parts in a Model 3. Any internal combustion vehicle, even the cheapest sub-economy model, will have at least 20,000 discrete parts. An internal combustion engine (ICE)-based drivetrain is and always will be dramatically more sophisticated and complex than any electric drivetrain vehicle.”
Elon Musk admitted they mark up the cars 20%
... 8000 parts vs 20000 parts?
So the battery alone would cost about 12000 parts of an ICE car ...
I'm curious to see the battery replacement cost come 2028. I'm sure it will be a no brainer for people who want to keep their cars for a very long time to finance a new battery.