Tesla profit margin is severely impacted

[Tesla2.0]

Stellantis CEO says Tesla margins hurt as EV maker faces reality check

Stellantis head Carlos Tavares said on Wednesday that the profitability of Tesla was declining as the rival U.S. automaker entered the real world of manufacturing and competition.

www.reuters.com

"The result of the fact that Tesla is now entering my world, is that their profitability moved from more than 17% in the first half of 2022 to 10.5% in the first half of 2023," CEO of Stellantis Carlos Tavares said.

"They were more profitable than Stellantis, now they are less profitable than Stellantis".

 

[joec]

Stellantis CEO says Tesla margins hurt as EV maker faces reality check

Stellantis head Carlos Tavares said on Wednesday that the profitability of Tesla was declining as the rival U.S. automaker entered the real world of manufacturing and competition.

www.reuters.com

"The result of the fact that Tesla is now entering my world, is that their profitability moved from more than 17% in the first half of 2022 to 10.5% in the first half of 2023," CEO of Stellantis Carlos Tavares said.

"They were more profitable than Stellantis, now they are less profitable than Stellantis".

Doesn't surprise me. That's what happens when you slash prices in the hopes of killing your competition. You suffer in the short term, profit-wise.

Not a strategy I would endorse, but it does seem to work in the short term.

Feels like Elon is doing a lot of short-term thinking lately.

 

[Tesla2.0]

Doesn't surprise me. That's what happens when you slash prices in the hopes of killing your competition. You suffer in the short term, profit-wise.

Not a strategy I would endorse, but it does seem to work in the short term.

Feels like Elon is doing a lot of short-term thinking lately.

Wait til California rules Enhanced Autopilot and FSD purchase can be refunded for unsatisfactory consumer for market misrepresentation. Tesla will need a lot more cushion to absorb refund impact.

 

[Bobby]

Doesn't surprise me. That's what happens when you slash prices in the hopes of killing your competition. You suffer in the short term, profit-wise.

Not a strategy I would endorse, but it does seem to work in the short term.

Feels like Elon is doing a lot of short-term thinking lately.

Predatory pricing.

 

[Tesla2.0]

It seems like Tesla is embracing Chinese culture of cutting red tape, quantity over quality, drive price to the bottom, slave whipping long hours, delete essential parts for profit, ‘service what?’ style of corporate operation. It’s just basic greed more than any BS green electrification movement.