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.
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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