Tesla Business and News Thread
Thread Starter
Lexus Champion
Joined: Oct 2019
Posts: 19,774
Likes: 3,781
From: California
They could have done what GM did and offer a bigger battery pack, but this probably makes things easier to add more range
more incentives means lower margins. Continue to bring manufacturing costs down? What is left? put window buttons in the screen? lol. In all seriousness, I thought Tesla was already operating extremely efficient? If credits gets removed I am not sure how they can sustain sales while keeping margins above 10%.
Thread Starter
Lexus Champion
Joined: Oct 2019
Posts: 19,774
Likes: 3,781
From: California
more incentives means lower margins. Continue to bring manufacturing costs down? What is left? put window buttons in the screen? lol. In all seriousness, I thought Tesla was already operating extremely efficient? If credits gets removed I am not sure how they can sustain sales while keeping margins above 10%.
Q3 of last year their margins increased specifically due to lowering manufacturing costs. There are always ways of making things more efficient, and then there are material costs such as batteries that continue to go down.
Tesla has very real competition right now, I had no idea GM sold over 100k EV's last year. Hyundai sold over 44K Ioniq 5's. If they want to continue to compete with Hybrids, they are going to need to live with lower margins
Thread Starter
Lexus Champion
Joined: Oct 2019
Posts: 19,774
Likes: 3,781
From: California
Why not 🤣
Q3 of last year their margins increased specifically due to lowering manufacturing costs. There are always ways of making things more efficient, and then there are material costs such as batteries that continue to go down.
Tesla has very real competition right now, I had no idea GM sold over 100k EV's last year. Hyundai sold over 44K Ioniq 5's. If they want to continue to compete with Hybrids, they are going to need to live with lower margins
Q3 of last year their margins increased specifically due to lowering manufacturing costs. There are always ways of making things more efficient, and then there are material costs such as batteries that continue to go down.
Tesla has very real competition right now, I had no idea GM sold over 100k EV's last year. Hyundai sold over 44K Ioniq 5's. If they want to continue to compete with Hybrids, they are going to need to live with lower margins
more incentives means lower margins. Continue to bring manufacturing costs down? What is left? put window buttons in the screen? lol. In all seriousness, I thought Tesla was already operating extremely efficient? If credits gets removed I am not sure how they can sustain sales while keeping margins above 10%.
gross margins can always be under pressure when you're spending a ton on r&d - data centers, robots, batteries, roofs, superchargers, etc., as well as new models.
I assume the juniper y brought some efficiencies and cost reductions too with larger pressings and maybe using their simplified wiring/cables/connectors.
and with the chart not broken out by model it's not that helpful... I'm sure the cybertruck has cost Tesla a fortune in manufacturing costs and sounds like the volume (and probably margins) isn't that great.
Thread Starter
Lexus Champion
Joined: Oct 2019
Posts: 19,774
Likes: 3,781
From: California
thanks for the cheerful assessment.
gross margins can always be under pressure when you're spending a ton on r&d - data centers, robots, batteries, roofs, superchargers, etc., as well as new models.
I assume the juniper y brought some efficiencies and cost reductions too with larger pressings and maybe using their simplified wiring/cables/connectors.
and with the chart not broken out by model it's not that helpful... I'm sure the cybertruck has cost Tesla a fortune in manufacturing costs and sounds like the volume (and probably margins) isn't that great.
gross margins can always be under pressure when you're spending a ton on r&d - data centers, robots, batteries, roofs, superchargers, etc., as well as new models.
I assume the juniper y brought some efficiencies and cost reductions too with larger pressings and maybe using their simplified wiring/cables/connectors.
and with the chart not broken out by model it's not that helpful... I'm sure the cybertruck has cost Tesla a fortune in manufacturing costs and sounds like the volume (and probably margins) isn't that great.
I actually wouldn't be sad if they completely dropped the Cyber Truck. The tech developed for it would definitely benefit future Tesla models
Why not 🤣
Q3 of last year their margins increased specifically due to lowering manufacturing costs. There are always ways of making things more efficient, and then there are material costs such as batteries that continue to go down.
Tesla has very real competition right now, I had no idea GM sold over 100k EV's last year. Hyundai sold over 44K Ioniq 5's. If they want to continue to compete with Hybrids, they are going to need to live with lower margins
Q3 of last year their margins increased specifically due to lowering manufacturing costs. There are always ways of making things more efficient, and then there are material costs such as batteries that continue to go down.
Tesla has very real competition right now, I had no idea GM sold over 100k EV's last year. Hyundai sold over 44K Ioniq 5's. If they want to continue to compete with Hybrids, they are going to need to live with lower margins
The competition as you mentioned is real, European sales seems to be in the gutter which is putting it lightly.
I knew quite a few here had said Musk being outspoken does not or has minimal effect on sales but with other EV manufacturers having growth or minimal decline compared to Tesla...what other reasons are there? is the line up not as good as the competition?
could be the old models 3/Y ramp down and new models 3/Y ramp up.
europe has screwed themselves on ev's. they pushed the heck out of them but the cars are expensive (taxes) unless big tax incentives (which vary a lot), and electricity is EXPENSIVE in many countries there and public charging infrastructure varies greatly.
i think a ton was riding on the new Y which i bet many buyers were waiting for. they probably still have a lot of old Y inventory they'll have to blow out at little if any margin.
The competition as you mentioned is real, European sales seems to be in the gutter which is putting it lightly.
I knew quite a few here had said Musk being outspoken does not or has minimal effect on sales but with other EV manufacturers having growth or minimal decline compared to Tesla...what other reasons are there? is the line up not as good as the competition?
ClubLexus Stories
Celebrating Lexus & Toyota from Around the Globe
Top 10 Most Confusing Things Lexus Has Ever Done!
Joe Kucinski
2026 Lexus ES Review: Lexus Re-Embraces Founding Principles
Michael S. Palmer
10 Lexus Bargains That are Cheaper Than a New Toyota RAV4
Joe Kucinski
8 Weirdest Things Lexus Has Ever Built
Verdad Gallardo
10 Lexus Designs That Have Aged Like Fine Wine
Verdad Gallardo
8 Tips for Improving Your Hybrid or Plug-in Hybrid's Efficiency!
Michael S. Palmer
10 Best Lexus Models No One Remembers
Joe Kucinski
TRD Off-Road Premium: Best 2026 4Runner, Except This One Thing
Michael S. Palmer
Top 10 Lexus & Toyotas to Drive Before You Die!
Joe Kucinski
Thread Starter
Lexus Champion
Joined: Oct 2019
Posts: 19,774
Likes: 3,781
From: California
If that's the case for Q3 then why did Q4 see a large decline? IMO it seems like it was a one time savings or perhaps the Cybertruck foundation series skewed the numbers for Q3?
The competition as you mentioned is real, European sales seems to be in the gutter which is putting it lightly.
I knew quite a few here had said Musk being outspoken does not or has minimal effect on sales but with other EV manufacturers having growth or minimal decline compared to Tesla...what other reasons are there? is the line up not as good as the competition?
The competition as you mentioned is real, European sales seems to be in the gutter which is putting it lightly.
I knew quite a few here had said Musk being outspoken does not or has minimal effect on sales but with other EV manufacturers having growth or minimal decline compared to Tesla...what other reasons are there? is the line up not as good as the competition?
thanks for the cheerful assessment.
gross margins can always be under pressure when you're spending a ton on r&d - data centers, robots, batteries, roofs, superchargers, etc., as well as new models.
I assume the juniper y brought some efficiencies and cost reductions too with larger pressings and maybe using their simplified wiring/cables/connectors.
and with the chart not broken out by model it's not that helpful... I'm sure the cybertruck has cost Tesla a fortune in manufacturing costs and sounds like the volume (and probably margins) isn't that great.
gross margins can always be under pressure when you're spending a ton on r&d - data centers, robots, batteries, roofs, superchargers, etc., as well as new models.
I assume the juniper y brought some efficiencies and cost reductions too with larger pressings and maybe using their simplified wiring/cables/connectors.
and with the chart not broken out by model it's not that helpful... I'm sure the cybertruck has cost Tesla a fortune in manufacturing costs and sounds like the volume (and probably margins) isn't that great.
For example, data centers, robots, roofs, superchargers are all separated from the calculation.
could be the old models 3/Y ramp down and new models 3/Y ramp up.
europe has screwed themselves on ev's. they pushed the heck out of them but the cars are expensive (taxes) unless big tax incentives (which vary a lot), and electricity is EXPENSIVE in many countries there and public charging infrastructure varies greatly.
i think a ton was riding on the new Y which i bet many buyers were waiting for. they probably still have a lot of old Y inventory they'll have to blow out at little if any margin.
europe has screwed themselves on ev's. they pushed the heck out of them but the cars are expensive (taxes) unless big tax incentives (which vary a lot), and electricity is EXPENSIVE in many countries there and public charging infrastructure varies greatly.
i think a ton was riding on the new Y which i bet many buyers were waiting for. they probably still have a lot of old Y inventory they'll have to blow out at little if any margin.
IMO you're missing the forest for the trees. Tesla has been offering incentives more than ever in their history at some of the lowest prices for each model. Tesla made significant price cuts in 2022 and 2023 which is reflected in the graph margins. An entry level Model Y just 2 years ago was 67k. Its now at 45k? 33% decline ....that is hard to recoup in manufacturing efficiency.
Lead Lap
Joined: May 2010
Posts: 4,001
Likes: 1,630
From: San Diego, CA
Over and above the decline in Germany, Tesla is down an even greater percentage in France, the second biggest EU market, and down in the UK, now the overall biggest European market.
Per Reuters:
”Tesla's UK sales fell nearly 12% in January, even as monthly EV registrations in Europe's biggest battery-electric market surged to a record, according to data published by New AutoMotive on Tuesday.
That follows a 63% decline in January sales for Tesla in France, drops of 44% and 38% in Sweden and Norway, and a 42% fall in the Netherlands. In California, the largest U.S. car market with more than 1.7 million vehicle registrations in 2024, Tesla sales fell by 12%.”
That sales are down in these locations is nothing to do with the cars, which are excellent.
Per Reuters:
”Tesla's UK sales fell nearly 12% in January, even as monthly EV registrations in Europe's biggest battery-electric market surged to a record, according to data published by New AutoMotive on Tuesday.
That follows a 63% decline in January sales for Tesla in France, drops of 44% and 38% in Sweden and Norway, and a 42% fall in the Netherlands. In California, the largest U.S. car market with more than 1.7 million vehicle registrations in 2024, Tesla sales fell by 12%.”
That sales are down in these locations is nothing to do with the cars, which are excellent.
one month is not a trend.
I doubt taxes and electricity being expensive have anything to do with it or that would be reflected on the entire EV market not just Tesla.
IMO you're missing the forest for the trees. Tesla has been offering incentives more than ever in their history at some of the lowest prices for each model. Tesla made significant price cuts in 2022 and 2023 which is reflected in the graph margins. An entry level Model Y just 2 years ago was 67k. Its now at 45k? 33% decline ....that is hard to recoup in manufacturing efficiency.
Over and above the decline in Germany, Tesla is down an even greater percentage in France, the second biggest EU market, and down in the UK, now the overall biggest European market.
Per Reuters:
”Tesla's UK sales fell nearly 12% in January, even as monthly EV registrations in Europe's biggest battery-electric market surged to a record, according to data published by New AutoMotive on Tuesday.
That follows a 63% decline in January sales for Tesla in France, drops of 44% and 38% in Sweden and Norway, and a 42% fall in the Netherlands. In California, the largest U.S. car market with more than 1.7 million vehicle registrations in 2024, Tesla sales fell by 12%.”
That sales are down in these locations is nothing to do with the cars, which are excellent.
Per Reuters:
”Tesla's UK sales fell nearly 12% in January, even as monthly EV registrations in Europe's biggest battery-electric market surged to a record, according to data published by New AutoMotive on Tuesday.
That follows a 63% decline in January sales for Tesla in France, drops of 44% and 38% in Sweden and Norway, and a 42% fall in the Netherlands. In California, the largest U.S. car market with more than 1.7 million vehicle registrations in 2024, Tesla sales fell by 12%.”
That sales are down in these locations is nothing to do with the cars, which are excellent.
found this (extremely biased and negative source - and after reading other articles of his recently, this jonathan gitlin clearly LOATHES tesla, current admin, etc).
https://arstechnica.com/cars/2025/02...omments-page=1
the comments section in particular is 100% VERY negative against musk.
i have to imagine at some point musk will find a new ceo for tesla. his focus seems to be govt, space, ai, x.
https://arstechnica.com/cars/2025/02...omments-page=1
the comments section in particular is 100% VERY negative against musk.
i have to imagine at some point musk will find a new ceo for tesla. his focus seems to be govt, space, ai, x.