/biz/ - Business & Finance

None of the ICE manufacturers will push electric cars because it undermines their business model. They are tied to dealers at the hip and the dealers don't want EVs because they need much less maintenance. Dealers make money off of service. A Tesla's drivetrain consists of two parts. No oil to change either.

We are approaching the three year mark for the early Model S-es. Guess what, Tesla will buy these back up and re-sell them as used cars. Again, no dealers to deal with. Used cars are higher margin than new cars. More cash flow.

Also GM's gross margin is like 3% and Tesla's was 28% last quarter. There are provisions in Tesla's employee stock options to vest if they hit a 30% gross margin. They plan on making 10 times more per vehicle than the largest car manufacturer in the world. As an aside, unlike GM, Tesla doesn't have to deal with unions.

Tesla would be profitable TODAY if they cut their massive R&D and SG&A expenses by only 25%. lrn2 10Q