Wake up emectric cars are better, safer, and no gas bill, and cleaner, no emissions, and a better style car, and has quick electric motor, and is what people want, so EV in old gas, diesel is old tech , cars will run with new solar, battery, or internal energy cells, it is the future.
I disagree. Each model S sells for $19,800 over cost of goods sold. So, 40,000 units x $19,800 = $792,000,000 gross profit or 3.96 percent . I don't think thats too bad for start up, especially when you consider that GM has a 3.6 % gross margin and Ford has a 4.5% gross margin and THEY have been building cars for a hundred years.
(( Each model S sells for $19,800 over cost of goods sold. )))
No it doesn't. They got $51,000,000 from ZEV credit sales. Those won't repeat in Q3 and beyond because sales in Europe do not generate these credits.
No one makes money selling EVs, This is not hard. this is a scam. Tesla LOST money in Q2. They are using NON-GAAP accounting to inflate revenues and over state profits.
Operations burned $ 38,193,000 in Q2. Where will they get the cash to pay back the massive debt they incurred in Q2?
Evertrue, can you name one, single car-buying person you've ever met who's thrilled to pay a $19,800 gross profit to a seller??? In my almost 30 years in the auto business I never have seen it! Tesla can't make money and never will those types of margins. People just won't do it!
100,000 sales would produce a $588 million dollar loss at current loss rate.
PS: Of course that was tongue in cheek. If they had 100,000 sales they would probably breakeven.
But there is almost no market for EVs. Tesla has been throwing out incentives trying to drum up sales. Trying to find 100,000 buyers annually is almot impossible. Tesla originally planned a wider product range but have cancelled & delayed products.
I know people that work at tesla!!! First they have back order(Reservation) of 20,500 for the model s and 5100 for the model x. They make about 20,000 profit on each car! Tesla is going places :) everyone going want a model gen 3 for 30,000. who wants to pay for gas anymore when you can shift that money for a payment! Tesls will own the market in 2016
They are projected to sell 21,000 to 31,000 cars this year and they are now worth $20B ($166/share), so by next year if they sell 40K car then it would $200-300/ share easy ! Right? Just imagine that ! LOL.
Sentiment: Strong Buy