Which Model Generates More Profit for Tesla?

[EV-lutioin]

Tesla has been making quite a few changes to pricing of Model S and X recently and I'm wondering if they would rather nudge consumers into a performance Model 3 or a base Model S or X. I didn't include the performance Model S or X because I assume, at ~$120K, they are quite profitable. I also did not include paint, wheels or autopilot since those items should be equally profitable on all three models.

 

[Misterbee]

Tesla has been making quite a few changes to pricing of Model S and X recently and I'm wondering if they would rather nudge consumers into a performance Model 3 or a base Model S or X. I didn't include the performance Model S or X because I assume, at ~$120K, they are quite profitable. I also did not include paint, wheels or autopilot since those items should be equally profitable on all three models.

I assume you mean on a per-unit basis? if not, then it's M3, just based on the number of units sold.

 

[EV-lutioin]

I assume you mean on a per-unit basis? if not, then it's M3, just based on the number of units sold.

Good point, I should have clarified that. Yes, per unit basis.

 

[wdolson]

Per unit it's almost certainly the Performance M3. The Model S P100D probably has the biggest margin. Per production line the Model 3 production is probably the most profitable. For a manufacturer, the real measure of profit is how much you make per sq ft of factory space. If you have a production line that takes up 100,000 sf and makes 10,000 cars a year at $50K profit each, but you can make an equal profit making 100K cars in the same sf with a $5K profit each.