What does 1% margin actually mean?

[CoastalCruiser]

OK. So a recent leaked employee email from Elon has him stating that the margin is currently around 1%. Right?

Has anyone taken apart a recent financial report from Tesla that truly understands what that means? What is he including to arrive at the margin?

Does that figure account for all of Tesla operations? ... cars, energy products, solar, China, et al?

Does the figure include the carbon credits?

Most importantly, is the 1% margin EXclusive of R&D? In other words, it is assumed it accounts for CapEX (Capital Expenditures). Right? But is he including R&D in the figure? Profits that the company is ploughing right back into the company. In which case a 1% margin may be just about right?

 

[ggr]

Profit divided by revenue.

 

[CoastalCruiser]

Of course. But I am asking what is the make up of "profit", as detailed in my question.

 

[ggr]

Try this: helpful information about profit.