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All tech companies report R&D and SG&A as operating expenses, not cost of goods. For some reason auto companies report R&D in cost of goods. I used to think this was because they capitalized the R&D expense and amortized it over units sold as part of COGS. After doing a little research it looks like they expense all R&D in the current period in COGS. That doesn't make sense to me since the bulk of development in a specific period is going to products that aren't shipping yet, so why include it in COGS?So far as I can tell Tesla reports R&D and SG&A as separate line items, not part of the gross margin calculation. Shouldn't some (maybe even most) of those expenses be considered part of the cost of the vehicle? Or am I missing something obvious?
Well, you know there are three kinds of people in the world: those who can count, and those who can't.
By this logic you may want to pray that Tesla sells 5,000,000 cars per year, losing 6k each will mean lots of profits for shorts.
How much of this is self full-filling? Anyone think that the subcontractor of the pack manufacturing line read all the FUD and assumed they would never have to produce a line that met up to Tesla's expectations?
So far as I can tell Tesla reports R&D and SG&A as separate line items, not part of the gross margin calculation. Shouldn't some (maybe even most) of those expenses be considered part of the cost of the vehicle? Or am I missing something obvious?
This is not 100% consistent. Most auto companies are not vertically integrated, so much R&D is done by Tier One suppliers. (LG with Bolt is a good example). In those cases R&D becomes part of COGS by definition. When evaluating the specific topic of GM, including R&D tends to equalize the data. Still we have R&D definitional questions too. Some will include a new factory, for example, others will not. How to change compare apples to apples is always less than perfect.All tech companies report R&D and SG&A as operating expenses, not cost of goods. For some reason auto companies report R&D in cost of goods. I used to think this was because they capitalized the R&D expense and amortized it over units sold as part of COGS. After doing a little research it looks like they expense all R&D in the current period in COGS. That doesn't make sense to me since the bulk of development in a specific period is going to products that aren't shipping yet, so why include it in COGS?
Since my background is not in finance, can anyone here who did this stuff for a career please confirm this? (I thought of asking @Donn Bailey over a SA but changed my mind.)
Tesla is losing 6k on every model 3s they sell.. it i almost like a charity. kind of sad
I like beer, what can I say.I'm still trying to figure this one out. It must be Saturday night.
I’ll just point out that MY joke goes to 11.I thought there were 10 kinds of people in the world. Those that do math in binary and those that don't.
Now I'm confused.
They do lose that much money per each model 3 they sell right now.
As Tesla buyers are likely to order well-equipped versions (margins on the options should be ~50%), the required ~$41k threshold is likely to be well exceeded, in our view.”
No they don't, even using the link you provided:
Since they are not selling the $35K version of the Model 3 right now, nor in the near future, your statement is completely false, as expected.
On your previous post, didn't you said you were going to block me or something? I figured, you are learning quite alot from me so you decided not to block me. This can only be the obvious reason.
Why wouldn't they be selling the $35K model? The car itself is $35K (starting price) with most of the features locked and it can be unlocked at any time once you pay extra $$. Buying extra features are not required and who is going to stop me from not buying it? Stop your flattering yourself that you think you are the king of Tesla knowledge. haha
And also, EM said the bare bone version cost $35K unless he's trying to bait buyers in for something else.
As @SPadival says below, the clear implication the way the text was written was as though Tesla was saying "automated", but doing "by hand". Debugging robots by manually stepping them through the code is still part of the automated process. Therefore, FUDster misrepresenting the truth, i.e., lying as usual.
I'm having a bit of fun pointing out your stupidity. Soon I'll be bored and you'll disappear.
Proving your ignorance once again, Tesla is currently only selling the larger battery long range model. Guess what? It costs more than $35K. haha
See above.
They're currently only selling the long range version with premium interior. Cheaper versions will become available when production ramps up. Probably December at the earliest.I see no sources that indicates they only sell longer range battery version or that they skipped the $35K version.
I see no sources that indicates they only sell longer range battery version or that they skipped the $35K version.
If it is true then EM is somewhat of a con-artist or not a straight talker. also, you can be his messenger. haha
He made countless promises that he couldnt kept. things like driving demonstration from LA to NY hands-free, delay on model 3 production in a few occasions, delay on semi event.
I'm an owner who made a deposit early on Day One and the Delivery Estimator on mytesla currently shows Early 2018 for the standard battery.They're currently only selling the long range version with premium interior. Cheaper versions will become available when production ramps up. Probably December at the earliest.
I totally agree with what you are saying. You just picked the wrong target. I wasn't talking about @schonelucht; we were all commenting on an article. It's the author of that article who was *my* target.There are some people who have posted on this forum who seem like paid provocateurs. Schonelucht is not one of them. Differences of opinion are different understandings or interpretations of technical processes are NOT lying. There is plenty of BS out there, but please show some difference and humility when having a discussion. Too many people seem to have forgotten the difference between an opinion, and interpretation of fact/s and facts themselves. It is also ironic when people with common values throw each other under a bus when they hear something they don't like. I know this is the internet and respect is not the norm, but TMC generally has a higher standard.
On your previous post, didn't you said you were going to block me or something? I figured, you are learning quite alot from me so you decided not to block me. This can only be the obvious reason.
Why wouldn't they be selling the $35K model? The car itself is $35K (starting price) with most of the features locked and it can be unlocked at any time once you pay extra $$. Buying extra features are not required and who is going to stop me from not buying it? Stop your flattering yourself that you think you are the king of Tesla knowledge. haha
Model 3
And also, EM said the bare bone version cost $35K unless he's trying to bait buyers in for something else.