Looks like the price change is making a difference. Only 2 new Long Range Plus Model S cars in inventory anywhere in the US right now. I wouldn't be surprised to see another cut to the Performance model in the coming months. If they got the starting price of the Performance model to $80k, I might be in.

 

does Tesla even make a profit if other auto companies doesn't buy regulatory credits from them? Tesla can't keep relying on the sales of regulatory credits for revenue.

 

Yes. They made $397M in regulatory credits. Their operating profit was $809M. So roughly half of their operating profit was due to their core business.

 

Tesla has one of the highest (could be the highest at this point) profit margins of any auto maker. Again, for those that don't get the basics, Tesla has massive build out costs which temporarily brings down overall profitability.

 

They also said they may spend up to $12B in the next couple years in factory buildouts so they are being super aggressive. Won't see profitability if that happens but now its a Amazon story. They've proved profitability but is chasing further growth now. Good for Tesla.

 

Tesla gross margins are better than the legacy manufacturers