Not to mention the lobbying against robust transit options, and for car-centric city design. The personal automobile is marketed as freedom but in reality it is an expensive infrastructure ball & chain
Yeah Tesla and Rivian skipped the dealership model, but their pricing isn’t any lower. Arguably higher, especially long term when you include repair costs.
Tesla also runs much higher margins than competitors. They could be cheaper, but they choose not to be.
After a quick search…
Ford’s gross margins are about 8%.
GM is about 7%.
Kia is about 8%.
Toyota is about 9%.
Tesla is around 25-30%.
Rivian is around 2% it looks like (but they also build the Amazon fleet, which seems to not be included in the numbers I could find quickly).
Note that the legacy auto numbers are what the main company profits, not dealerships. The newer companies can pocket that directly.
A primary reason is newer companies like Tesla and Rivian are still building their manufacturing capabilities. That additional profit is going towards that expansion.
Tesla’s margins are nowhere near 30%. They technically were there for like a single quarter. Even without all the insane accounting tricks they use, they’re around 10% now, and it’s likely that’s a lie.
The car dealer lobby can go fuck themselves. How much cheaper would cars be already with no middle man using high pressure sales tactics
Not to mention the lobbying against robust transit options, and for car-centric city design. The personal automobile is marketed as freedom but in reality it is an expensive infrastructure ball & chain
Yeah Tesla and Rivian skipped the dealership model, but their pricing isn’t any lower. Arguably higher, especially long term when you include repair costs.
Tesla also runs much higher margins than competitors. They could be cheaper, but they choose not to be.
After a quick search…
Ford’s gross margins are about 8%.
GM is about 7%.
Kia is about 8%.
Toyota is about 9%.
Tesla is around 25-30%.
Rivian is around 2% it looks like (but they also build the Amazon fleet, which seems to not be included in the numbers I could find quickly).
Note that the legacy auto numbers are what the main company profits, not dealerships. The newer companies can pocket that directly.
A primary reason is newer companies like Tesla and Rivian are still building their manufacturing capabilities. That additional profit is going towards that expansion.
Tesla’s margins are nowhere near 30%. They technically were there for like a single quarter. Even without all the insane accounting tricks they use, they’re around 10% now, and it’s likely that’s a lie.
You’re right, that was from a few years ago…
Their gross margin was 20%, up from 16% last year, and automotive margins actually increased from 15% to 18%.
https://www.investing.com/news/transcripts/earnings-call-transcript-tesla-q4-2025-sees-earnings-beat-stock-dips-93CH-4480867
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