That's about right. On the Q1 earnings call Elon estimated 25% GM for the Model 3 by mid-2019 and a goal of "high 20s" GM by late 2019. Edited Transcript of TSLA earnings conference call or presentation 2-May-18 9:30pm GMT
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That's about right. On the Q1 earnings call Elon estimated 25% GM for the Model 3 by mid-2019 and a goal of "high 20s" GM by late 2019. Edited Transcript of TSLA earnings conference call or presentation 2-May-18 9:30pm GMT
Dan Detweiler
Active Member
I believe he said in a later update 36% as tested and around 18% for the base car.
Dan
with enough vehicles on the road .. what kind of advantage do cameras that customer never plans to use and doesn't want to pay for .. give tesla? (cameras just example, and even 8 cameras are cheap these days, but may be the circuit boards etc can also be minimized) and save production cost and increase gross margin ...
AEB is going to be a required feature, which means you need at least one camera and all the computing power to support it. At that point they might as well just include all of the cameras.
Esme Es Mejor
Member
Munro estimates 18% gross margin on the 35K model. Tesla hasn’t broken out their target GM for the bare bones model, but it seems safe to assume it’s more than 10%.
When they start producing the SR version in volume, they should be able to ship high-end versions to Europe & Asia at the same time, so even then their overall GM should still be strong.
Off Shore
Off Topic Member
There's no way the total package of computer/radar/cameras/sensors costs Tesla more than $1K. At any time during the life of the car these can these can produce revenue; as much as ten times their cost.
That's just the first sale. Tesla may sell it as a CPO with EAP the second time...
Krugerrand
Meow
Resale. Bought as a used car, the buyer could purchase the software which would be pure profit for Tesla.
Mongo beat me to it. The *******!
thanks this is really good to know - knew electronics these days was cheap, but it everything is under 1K, then ya definitely not worth trying to redesign to save costs.
based on the replies, I think it is safe to say that margin even for Standard 35K will be atleast 10%.
So watch out Tesla killers, this is the price point you'll need to deal with ...
Nearly everyone trades electronically, so the difference between an HFT and any given participant is trading frequency as the name suggests. We make fractions of a tick many many times a day using statistical forecasting. This algorithm can’t be abused to manipulate because it contains no abusive action. The distinction between participants is nuanced and that is why it is difficult to distinguish for the lay person.
Manipulative actions themselves generally have negative expected value but money can be recouped in correlated markets or with hidden liquidity. Spoofers hide orders on the ask then send huge quotes to the bid, once filled they then reverse. Funnily enough, HFTs are generally the victims of such manuevers and complain to authorities. Occasionally the manipulators spoofed orders do get filled and they take huge losses. Spoofing generally happens during quiet periods during the day for this reason. Manipulation can not be done as frequently as one pleases, there is significant risk.
Manual traders taking manipulative actions will often have software that initiates their ploy. Using software to trade quickly does not make one a HFT.
Manipulative actions themselves generally have negative expected value but money can be recouped in correlated markets or with hidden liquidity. Spoofers hide orders on the ask then send huge quotes to the bid, once filled they then reverse. Funnily enough, HFTs are generally the victims of such manuevers and complain to authorities. Occasionally the manipulators spoofed orders do get filled and they take huge losses. Spoofing generally happens during quiet periods during the day for this reason. Manipulation can not be done as frequently as one pleases, there is significant risk.
Manual traders taking manipulative actions will often have software that initiates their ploy. Using software to trade quickly does not make one a HFT.
RobStark
Well-Known Member
At some point in the life cycle of a base Model 3 someone will buy it, pay to have FSD turned on, and place it into service on the Tesla Network.
Even if FSD only works geofenced in major cities in first world countries in decent weather.
Once the car reaches the $20k, $15k, or $10k price point.
If no one else then Tesla themselves will buy those base Model 3s and put them into Tesla Network service.
Some HFT front run, that's well known.
The marginal liquidity gains are far outwieghed by the intellectual loss applied to this generally zero-sum persuit inlieu of using their brains on someesome with more societal worth.
FirebirdAlpha
Member
So I'm short, but please, please, please consider what Munro says.
Munro is a report on variable costs: suppliers + labor.
It is NOT a report on "gross margin" (which includes overhead, logistics costs, and inventory costs).
HFTs do not front run. Front running is illegal and we have no clients or insider information. To make your claim without evidence is rather libelous.
The marginal liquidity gains created by electronic secondary markets, of which HFT now consists of roughly fifty percent has reduced bid ask spreads tremendously. As a thought experiment consider that in the early 2000’s bid ask spreads for very liquid securities would often be more than 1 cent wide. If HFTs reduced the bid ask spread by 1/2 cent, the minimum possible, you could literally multiply that across all electronic volume across the world, and be able to compute the total amount of money saved by investors in transaction costs. What would you guess that number to be? I don’t know myself but it is clearly enormous.
Esme Es Mejor
Member
A smart investor will always listen to and consider all points of view, especially those he disagrees with. Confirmation bias can be very dangerous.
You're so right. I'm now enlightened, I'm going to take Brinkmans advice, sell TSLA and buy GM and Ford. You can find me over at the GM motors club site if you need me.
Esme Es Mejor
Member
I already took Brinkman’s advice when he offered it in April. I took the shares I bought that day & sold them. In June. When the SP had gone up $70. I suppose I’ll do the same with the shares I bought today.
Listen to & consider does not necessarily mean accept.Say’s they person who seems to never do that.
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