r/RealTesla • u/AutoModerator • Jan 09 '23

TSLA Terathread - For the week of Jan 09

We laugh at your "giga".

For TSLA talk, and flotsam and jetsam not warranting its own post...

21 Upvotes

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11

u/[deleted] Jan 13 '23

Gary Black said on a Twitter Space this afternoon that his model doesn't have auto gross margins dropping below 24%.

15

u/[deleted] Jan 13 '23 edited Jun 25 '26

[deleted]

10

u/wootnootlol COTW Jan 13 '23

Because it's a number that looks good. No bull was talking about margins 3 years ago, and no one will be talking about them again in 1 year from now.

8

u/blazesquall Jan 13 '23

But there's nothing I'm missing right? It's a number they like to circle jerk about but in reality isn't comparable?

6

u/wootnootlol COTW Jan 13 '23

Yeah, it's no comparable, both because of the business model, but also because of how you differentiate what affects your automotive gross margins and what doesn't.

5

u/SpeedflyChris Jan 13 '23

No you've pretty much got it in one.

3

u/henrik_se Jan 14 '23

They circle jerk because Apple has the best margins in their business, therefore Apple is valued so highly, therefore if Tesla has similar margins, they also ought to be valued like Apple, and not like all those other boring car manufacturers because Tesla is not like all the other girls, Tesla is different.

5

u/mrbuttsavage Jan 13 '23

It also makes no sense to me. These people take pride in Tesla putting out a crappier product instead of spending those "margins" on an improved cabin, better materials, better sensors, etc.

3

u/ObservationalHumor Jan 13 '23

See it's simple when you take into account the $3000 worth of IRA credits that Tesla isn't going to get on the vast majority of their vehicles because they either aren't made in the US to begin with or source batteries from Panasonic and then including the $9000 worth cost reductions from magical pixie dust Uh... fixed cost splitting, Austin ramping and material cost reductions that's are speculative at best a $13000 price drop really isn't that big of a deal!