
Tesla’s gross margin on the Model 3 could be a game changer - skdotdan
https://electrek.co/2017/05/08/tesla-model-3-gross-margin/
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mhermher
An article I read recently made a good point about Tesla's margins that I
hadn't considered before.

Tesla is selling at retail directly to consumers, whereas most dealerships
sell wholesale to dealerships. Of course their margins will be higher, but
they have to eat the cost of their retail infrastructure that other
manufacturers don't.

In that way, their higher margins aren't that much of a benefit because some
of the cost is just getting shifted into SG&A. It was interesting because I
had never heard it brought up but it made a lot of sense.

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skdotdan
Very interesting, haven't thought of it. But at the end of the day selling
directly to the customer still is a competitive advantage, right?

