Mike66Chryslers
Senior Member
The report I read had everything grouped together to show an aggregate loss per unit. Do you know if the S and X models are profitable without the government incentives to produce "green" cars? That is the real fly in the ointment down the road because it is becoming less likely in the current political climate that such subsidies will be continued.
This analysis basically says that Tesla has not been able to find economies of scale. As their sales have gone up, their cost of sales have gone up just as fast, leaving no net profit with which to fund R&D.
https://seekingalpha.com/article/4075701-tesla-closer-look-margins-profitability
Tesla is what happens when geeks think they can build something better than real manufacturing professionals.
To be fair, they did involve a number of industry professionals leading up to the Model-S launch and it was a relatively smooth rollout. Musk's hubris took over for the Model-X though. It was designed in-house and was overambitious/overengineered with the huge one-piece windshield skylight, single-post seats and "falcon wing" rear doors. (A lot of effort to avoid putting sliding rear doors on it and calling it a minivan IMO.)
The Model-3 is what will make or break the company, and it's not looking so good right now. A big problem is that they skipped the "soft tooling" stage. This is when they make less expensive molds and dies from less durable metals and assemble some initial test-run cars to work out bugs in the assembly line and parts fitment. Industry guys said that would be a mistake, and they were right.