Tesla needs even more than 'ludicrous' speed
TESLA Inc refers to its most head-snapping level of acceleration as "ludicrous" mode. What the company needs, though, is escape velocity.
And what it needs to escape are its operating costs. The company didn't manage to turn a profit despite record vehicle deliveries in its last quarter. As cheaper Model 3s account for a bigger proportion of sales, bringing down average selling prices, so Tesla needs to bring costs down faster to compensate.
Comparing the gross margin on its core automotive business with the various expenses Tesla needs to absorb shows what it is up against.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Transport & Logistics
Tesla’s plan for affordable cars takes page from Detroit rivals
Toyota is investing US$1.4 billion to build another all-electric SUV in US
Airbus net profit soars 28% in first quarter
AirAsia discloses new listing plans under RM6.8 billion units merger
Baltimore’s trapped ships start leaving as new channel opens
S&P slashes Boeing credit outlook as rating hovers above junk status