Tesla makes over $15,000 for each car

In recent days, the decision of the company has caused a lot of uproar among insiders Tesla to “cut” the prices of its most popular cars, Model 3 And Model Yby more than 20%, with a discount that has come to exceed 12,000 euros (here the news). Many have wondered how the American car company managed to adopt this one pricing policy so aggressive, even taking into account the current historical period.

According to a recent analysis of the Reuters, the “secret” of Tesla is to be found in the high profit it makes on each vehicle sold. According to research, Tesla in the third quarter of 2022 recorded $15,653 gross profit per vehicle, more than double the Volkswagen Group, four times that of Toyota and five times that of Ford. To check the production costsTesla has invested heavily in new production technologies, such as the use of the so-called GigaPress, i.e. giant presses capable of making a single piece capable of replacing small metal parts.

This higher profitability it therefore constitutes Tesla’s “weapon” in the current price war for electric vehicles. Until a few weeks ago, the Elon Musk-led company had caught up with rivals, aggressively raising the prices of its most popular models like the Model Y. Shortages of semiconductors and other materials have caused global auto industry output to drop, “forcing” the companies in the sector to focus on higher margin models and to record strong profits, even as sales volumes have decreased. But Tesla’s current decision calls this strategy into question.

Analysts warn that the global electric vehicle market may soon have a production capacity exceeding demand. According to Warren Browne, industry forecaster, by 2026, the demand for electric vehicles in North America will reach a level of approximately 2.8 million vehicles per year. But North American EV factories will be able to assemble more than 4.5 million vehicles, meaning overall capacity utilization will be just under 60 percent.

In China, the end of Beijing government subsidies is accelerating a market share war between rivals. In the Land of the Dragon, the Xpeng it had initially benefited from Tesla’s price hikes. But now, given the current policy of the American house, Xpeng is also cutting prices in China, but with less financial leeway than Tesla. The Xpeng, according to the analysts of the Reutersreported third-quarter gross income of $4,565 and a net loss of $11,735 per vehicle.

There BYD, China’s electric vehicle market leader, announced a price hike effective Jan. 1 following Beijing’s decision to phase out subsidies for electric vehicles. Again, i margins BYD’s gross of $5,456 per vehicle gives it more wiggle room in a price war than VW, Toyota or GM.

We would like to thank the author of this write-up for this incredible material

Tesla makes over $15,000 for each car


You can find our social media profiles here as well as other pages on related topics here.https://prress.com/related-pages/