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Tesla Profit Poised To Soar As Its Production Passed The Breakeven Scale

Feb. 02, 2022 11:37 AM ETTesla, Inc. (TSLA)371 Comments


  • After 2021, there should no longer be any doubt about the profitability of Tesla.
  • It has clearly passed the pivot point of critical scale, recouped the fixed cost, and now began to harvest the benefit of the scale of production and expanding margin.
  • Production is expected to increase quickly as outputs from established factories in Fremont and Shanghai maximize.
  • New factories in Austin and Berlin and full self-driving software add further optionality and upward potential for shareholders.
  • Looking for a helping hand in the market? Members of Envision Early Retirement get exclusive ideas and guidance to navigate any climate. Learn More »

Tesla Debuts Its New Crossover SUV Model, Tesla X

Justin Sullivan/Getty Images News

Thesis and Background

After 2021, there should no longer be any doubt about the profitability of Tesla (NASDAQ:TSLA). As announced in the company's recent earnings report (the emphases were added by me):

In 2021, we achieved

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Envision Research profile picture

** Disclosure: I am associated with Sensor Unlimited.

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Department of Management Science and Engineering, with concentration in quantitative investment 

** PhD,  2006, Stanford University, Stanford, CA 

Department of Mechanical Engineering, with concentration in  advanced and renewable energy solutions

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Comments (371)

Envision Research profile picture
Thank you all for reading and for all the great comments! A few additional thoughts in response to some of the common themes:

* Some readers commented that with each additional factory, you add fixed costs. Therefore, the analysis shown in this article should be done factory by factory.
This is certainly a good point. The approach is trying to strike a balance between being wrong precisely and being correct approximately. There are good reasons to lump all fixed cost instead of analyzing them one factor at a time, and I believe the approach correctly captured the current dynamics. For example, 1. many of the costs are common even when new factory opens (e.g., capital costs, administrative, et al).

2. Moreover, since al of Tesla's assembly factories are building largely the same models, a large portion of the fixed cost can be shared and spread out (engineering, tools, logistics, et al).

* Many comments are also regarding the 30% CAGR assumed for the next a few years in its production.
Admittedly, 30% is just an assumption – and in my mind, a conservative assumption. If you have different estimates of the growth rate, could you also elaborate why?

Not trying to challenge anyone’s estimates, just genuinely interested in different approaches and perspectives.
WaveRider007 profile picture
@Envision Research Assuming...other car manufacturers don't take away sales before then. If you build it too late, they may not come...
I’m absurdly bullish on Tesla but the basic inflection argument is the explanation for the strong move starting 2019. The company is more mature now and we are simply in elaboration of their lead and in the period of time before the next s-curve realization occurs which is success of the FSD program. I think TSLA may be somewhat challenged this year because the company will be climbing a wall of worry that sales of current vehicles will not expand sufficiently to justify what is a very healthy market cap that assumes at least 5m sales.

FSD doesn’t look to me to be finished this year and offhand chance not next year either. The progress in FSD beta 10 is slow and basic errors still exist. However there are few rational arguments that they can beat to this tech, or even if approximately second, beaten to scale out the tech, and even if that is slow, failing to capture an enormous chunk of the enormously valuable spoils this tech will bring.

In the meantime, relentless cost refinement, scale benefits, government incentives and if necessary price cuts will in my opinion guarantee they sell everything they make for 2 years and leaves them with the perfect platform to explode into the robotaxi scene.

Good chance we never see the cybertruck or roadster or model 2. These are diversions and opportunity costs in a regime where selling robotaxis is the highest gross margin available. Tesla will have the engineering and cash to do these. The question will depend mostly about whether they want to sacrifice battery supply for these models. The same is true with the energy business. Over the decades energy storage is measured in hundreds of TWh. This is basically bottomless. A market as large as oil was last century. However this is lower margin so I’m not clear they will prioritize it so much as it is a fallback if auto demand ever slackens (recession perhaps).
@Aceinmysleeve also 5m units is easy. The next few years is going to be catastrophic for ICE sales because resale values will plunge raising the cost of ownership to non parity. Large older companies cannot pivot. They have too much complexity and too many cross purposes. Ford has over 100b$ in debt and a net profit scarcely above 0. They will be caught in bankruptcy proceedings. Japanese manufacturers have scarcely started. VW has made some good moves. BMW and Daimler are hosed. Koreans companies look strong. China will be strong. Overall there will be a large hole of failing legacy providers that make 5m units a simple target. 10m+ things start getting a little more speculative but EVs and robotaxi will actually expand absolute demand higher than the 80m units per year which all by itself is also expanding rapidly along with global GDP.

Tesla will be the first 10T$ company.
Aventador profile picture
In a few short years the EV build out at all those ICE manufactures you discount will be complete and the Tesla factory eco system will be minuscule in comparison.

What's funny is the auto majors in their timelines have been thru it all. Wars, recession, depressions and more. Tesla has been thru nothing but on government handouts since its inception. In a time frame measured in months it will go from a market it had alone to be one of many trapped with cars that are beyond outdated.

I will say greed rants like yours are fascinating that someone would put that silliness into print. I have read and seen decades of it. It always ends the same and never an exception.
@Aventador most of these companies aren’t even targeting Tesla numbers that are near at hand. I’ve been reading smug assurances on seeking alpha about the majors for 5 years on seeking alpha. They were all disposable. If you can’t intuitively understand how the future plays out at this stage vis a vis disrupted legacy given all the facts at hand you just aren’t good at this kind of work.
Hudson Investments profile picture
Assuming steady production growth, Tesla’s unit costs go down due to economy of scale. Additionally software sales in FSD keep margins high.
As the world’s preeminent EV company plus energy and software, I see the market cap growing in 2022.
Long TSLA!
solucky profile picture

" I see the market cap growing in 2022."

Japan just installed a 15K incentive program for BEV ...so teslas sales will skyrocket there.
Hudson Investments profile picture
@solucky Japan is an ideal place to sell Teslas. The incentive and love of “cool” in Japan will be the drivers.
WaveRider007 profile picture
@ArnieW HA, you don't know the Japanese loyalty. Plus, how many people will have charging availability on their existing grid? The Japanese economy is not growing now either, only because of exchange rate their goods are attractive as exports. The quality of TSLA would really need to catch up. Maybe you mean Chinese.
khlim115 profile picture
When TSLA automates more than 75% of the production tasks, no one will be able to match the efficiency and economics of their factories. Although the stock is crazy expensive, this still remains a disruptor at all levels of EV manufacturing (batteries, AI, car manufacturing and direct retail). This remains one of my speculative tech investments.
@khlim115 if they can do that is the stock really crazy expensive?
khlim115 profile picture
@rporpora2 Lets just say it's priced to perfection.
EV_supporter profile picture

Tesla is not priced to perfection. It's priced as if nothing they said they will do could happen.

A big recession might drag it lower temporarily, in the long run Tesla will surprise most of the bulls on the upside.

It's crazy after 18 years most people still can't understand what's happening.
"TSLA management's target is ambitiously at 20 million by 2030"

For ease of counting, assuming a global market of 100m cars in 2030 (may well be less as many people are now being priced out of new car purchases) Tesla is suggesting they will have 20% market share.

How will they achieve this level since we can see today that any market where there is meaningful competition Tesla's market share is falling and well below 20%.
@teebeesee yes. They can reach the number. Others say no, but it’s obvious Tesla is a top tier OEM.
Not a given, but they are hitting the milestones.
It’s the competition that is concerned, because meaningful may come to late.
solucky profile picture

"TSLA management's target is ambitiously at 20 million by 2030"

It was more...the stock is at 1K we need a new story.

Lets tweet about 20 million cars :-)

Maketshare in the EV niche :

2020: 23%
2021: 21%
2022: most likely below 20%
2025: 14%
2035: 5-6%
Tonexx profile picture
@teebeesee Meaningful competition like EU (21%), China (10%*, China's numbers are skewed because of Mini EV sales) and US (66%). These are the biggest markets with the most amount of competition.

BYD will probably be the biggest EV maker, Tesla will be the most profitable EV maker. There is no real way for the competition to compete with either BYD or Tesla, the issue is battery production. It just isn't possible to make enough to eclipse Tesla or BYD command of the market. The easiest way to tell this, is to look at the production plans for the competition, they are not even trying to take Tesla and BYD out. GM's Master Plan is to make as many EVs as Tesla does now.....in 5 Years. The other issue is cost of production, only BYD and Tesla have production costs at a reasonable level. I remember people saying Tesla wasn't profitable and never will be. Not only does Tesla have the highest Gross Margins, it can make vehicles in a fraction of the time that many of the Legacy Autos can. What Tesla has going for it, is innovation and innovative workforce, more importantly, they don't have the baggage Legacy auto has......Debt and aging workforce. Tesla has the people people and ideas, that can disrupt the market....virtually at will. While it will not be like this forever it, it will be a while before they have true competition.
doubleE profile picture
The whole point of Berlin and Austin is higher efficiency (structural battery, giga press) than Fremont or Shanghai and they will start off with model Y unlike Shanghai which started with model 3. So while Tesla will see some margin pressure as Austin and Berlin ramp, it should probably be no worse than the Shanghai ramp.

The analysis is fine the way it is. It does not need to be done factory by factory. Fixed factory costs go into COGs anyway and are a relatively small part of COGs once the factory is ramped up.

Tesla could conceiveably continue to increase operating and net margins even as auto gross margin comes under pressure. Musk’s CEO compensation package was a big over hang on 2021 results, they have paid down a significant amount of debt and continue to do so, more FSD revenue will become recognizable, S/X will ramp up to full volume and the energy business will continue to improve.

Tesla will make at least $12 billion in GAAP net income this year and could go as high as $15 billion
Baslim profile picture
@doubleE Tesla's range for GAAP net income is much more than 25%. I would take even odds on the outside of any 25% band of GAAP income.

Re: Margin pressure in Berlin and Austin:
Manufacturing costs in China are lower ... which is MOST important when you are selling in China because automakers face significant price pressure there. Shipping costs, import/export fees , and costs related to delayed delivery, must be factored in when vehicles are shipped from China to other geographies.

In Europe and the US, Tesla and its competition face the same economics. They either manufacture within the local cost structure or import vehicles to sell into the local market. In most cases, it is less expensive to manufacture vehicles within the local market unless one is selling in low volumes.
Actionable Conclusion profile picture
Don't over think it.

2019 = cash burn
2020 = 1000x PE
2021 = 400x PE
Q4 21 = 85x PE at $900sh

The trend is making the TSLA.Q valuation tantrum a moot point.

Balance sheet is cash positive with credit getting an upgrade.

YOY growth is over 80% and guiding for the same in 2022.

Gross margins are off the hook huge. As is operating income. And both are trending up.

As Austin and Berlin ramp up margins will take a small hit, but by year end they will fatten up, as profits will likely double YOY.

Nitpick your way to avoiding Tesla if you must... or, wise up and buy shares on weakness.

Keep it real, keep it simple... and enjoy the ride :-)
@Actionable Conclusion I think uptick and vouch might be correct. Are you sure you read the same info as the rest of us. TSLA needs to go up 30% just for me to break even this year.
@joeZen "...just for me to break even this year."

You're planning to sell TSLA this year? That's not how to invest in Tesla.
remember the haters that said Tesla was losing more money when they sell more cars? lol Ignore the FUD and buy long term. Tesla will grow over 50% again this year which is insane.
Aventador profile picture
A byproduct of rushed production....recalls

@Aventador You know most of Tesla's recalls are updated OTA right?
Aventador profile picture

Just a quick sample,

Model 3 Trunk Lid Harness Retrofit--NO
8GB eMMC Recall--YES
Model X steering assist motor bolt recall--NO
Model S steering assist motor bolt recall--NO
Tesla safety update--YES
Model S safety update--YES
Accessory adaptor 14-30, 10-30 and 6-50 recall--NO
Seat belt inspection recall--NO

5 out of 8 were shop visits and thats just a sample. I will add most of those is just shoddy build quality. FYI I have owned many Tesla's. I have torn town a dozen of them down to the last nut and bolt. Some things amaze me. Some not so much.
Maxed Out Mama profile picture
This article doesn't make a lot of sense to me, because with each additional factory, you add fixed costs. The type of analysis shown in this article is properly done factory by factory.

Tesla is quite profitable with the vehicles it is selling now. Notably, the more vehicles Tesla produces and sells out of Shanghai, the more profitable it is.

Tesla told us that margins would be pressured this year as it brought up the new factories, and that is because of both secular environment (rising costs) and because they are adding new fixed costs with each factory, and it takes time to ramp the factories.

The other wild card is that Tesla is now using LFPs for most of the cars produced at Shanghai (more than 55% of Model Ys; almost 80% of Model 3s). This probably can't be true for the Austin factory, and since LFP cells are so much cheaper, one cannot expect that Austin and eventually Berlin will be as profitable as Shanghai. I see no reason why Tesla couldn't import the cells and do the same, but that has costs too. From what they have told us so far, they will start using 2170s in Austin and Brandenburg and also use some 4680s. Those vehicles will initially have considerably higher costs due to the ramp, and probably permanently higher costs due to parts costs.
Tonexx profile picture
@Maxed Out Mama Tesla is using LFP in the USA as well. And I'm pretty sure they are going to be using LFP in Berlin.

But don't forget the savings Tesla will gain from using their own in house made batteries 4680 and that natural savings they will get from using a structural batteries. My feeling is that Tesla will not ramp up production, until they have met their pricing goals for each plant. In other words, they will do a lot of "testings".

Tesla unlike most of the other EV makers is very well vertically integrated. This makes controlling costs a lot easier, with their software teams they have been able to reduce the need for chips. One of the things that Elon mentioned that I found kind of interesting, is that he stated their factories are not at capacity. This could mean there is even more margin to be had by existing production. He also stated that the chip problem / supply chain problem is easing (btw other manufacturers have signaled the same thing). So the price for goods could be even to lower, not higher.

While the Austin and Berlin Gigafactories will have higher costs, this is offset by not having to ship the vehicles, duty, taxes and cost delays associated with shipping. Plus since the vehicles are built at home they will probably qualify for local incentives. This could create even greater demand in EU. In the US they just need to build more EVs anyway they can, so that releasing the Vehicles on the shelf will can be done with as little disruption as possible... to the bottomline.
Larry Hall profile picture
@Tonexx Tesla stock movement (up) may well be a second-half 2022 story if tied to the new factories. Berlin is clearly delayed, Austin is yet to officially open but it has absolutely enormous potential capacity for both battery and vehicle production. News like GM's Bolt problems and all the future models from other manufacturers ('promised') also indirectly strengthen Tesla's market case, imo.
VulpineMac profile picture
@Maxed Out Mama : "This article doesn't make a lot of sense to me, because with each additional factory, you add fixed costs. The type of analysis shown in this article is properly done factory by factory."
--- That would be true for a mature company that is building different models in each factory; at the moment, ALL of Tesla's assembly factories are building the same two models, with just one building the Models S and X. How many other OEMs even attempt to build the same model in every factory?

For Tesla, the Models 3 and Y are currently their most popular models and their most profitable models. With Texas and Germany coming online, we're about to see 3 and Y production more than double, while the cost of production will go down. The article is quite logical for the way things stand in the near future but may change as Tesla brings more, new, models into their stable. As yet, we have no solid idea of how much the Cybertruck or the Semi will cost to manufacture and that WILL change the curves, one way or another.
101VET profile picture
Hey Tesla should I jump in today or hold out for tomorrow and look for another drop.
@101VET anything under 1000 a good buy
Laura Lea profile picture
@101VET I am waiting for something under 790. But I think if I bought rallies up, as there are always rallies up when "stuck" folks sell at high supply levels, one could make money on the way down.
Larry Hall profile picture
@Laura Lea You might not see such levels again. If looking out five years, the difference between buying at 900 and 790 will probably be irrelevant.


"The sudden breaking (sic) has happened many times. It’s terrifying."
@Amos Tuck Not true.

Yes it is!

I attached the link.
VulpineMac profile picture
@Amos Tuck : On reading the article, it's not exactly "phantom braking," there's very obviously a reason for the braking that shows that the collision avoidance system is attempting to do its job. In each case mentioned, the car was braking to avoid a potential head-on collision with an oncoming truck. What we don't know from those quotes is under exactly what conditions those events occurred. The one detail we DO know is that it was on a two-lane (two-way) highway and I suspect that it was either cresting a hill or rounding a relatively blind curve. Under those conditions, even a human driver might be momentarily concerned that the truck is in their lane; the human just can't react as quickly as the computer under such circumstances. Of course, that delay in reaction also gives them time to realize the truck is (at least mostly) in its own lane.

So yes, they are under investigation for it but I'd also note that if every instance shows this rather common factor, they'll end up telling Tesla to fine-tune the system to account for such two-lane meets.
tdog6673 profile picture
What a bunch of arm-chair quarterback Tesla haters crying about Teslas phenomenal success. They snivel about P/E ratios while ignoring that there are stocks in the Healthcare sector and other sectors that are 2.3 and 4 thousand times their P/E ratios. Tesla’s P/E ratio was at 1400 at one time before falling down to almost a quarter of that. These comments made by a bunch of haters don’t even understand the market. Tesla doesn’t only sell cars. They sell energy as well. They were just approved to sell energy in Texas. They also do Solar roofs and they’re venturing into robotics which has a plethora of possibilities for Tesla’s future. Turn the channel on these ignorant shorts and get ready for the squeeze…again. Institutions ran by people much smarter then these arm chair quarterbacks own and hold billions of dollars worth of Tesla for a reason. Stay tuned shorts. Stay tuned.
EV_supporter profile picture

From a long term view, Tesla's P/E will drop to 0.5 if the stock price stays constant. Bears have no idea what's happening.

While shorts lost $60B shorting TSLA in the past, their biggest loss was missing on the long side. They still don't understand the art of investment is long something and gain 1000x on the upside. TSLA is a 6000 bagger in the making from 2010 to 2030. Another 20x is coming.
Bokoblin profile picture
@Blackboxtrader1 "From a long term view, Tesla's P/E will drop to 0.5 if the stock price stays constant. Bears have no idea what's happening."

Also, Tesla p/e could drop to 0.5 if the stock price doesn't stay constant.

Actually, this is an excellent article. It showcases legitimate progress, legitimate success of Tesla, across the board -- from engineering to sales to growth, promotion, market acceptance, and profitability.

The elephant in the room is valuation. The exact same article could be published with Tesla shares at $100 and we'd be debating whether they could grow to $150.

The exact same article could be published with Tesla shares at $300 and we'd be debating whether they could grow to $400.

The exact same article could be published with Tesla shares at $900 and we'd be debating whether they could break $1200.

The exact same article could be published with Tesla shares at $2000 and we'd be debating whether they could reach $3000.

Going to the extremes, with TSLA at $100, the article is persuasive and the incentive to buy shares is pretty strong. With TSA at $2000, the article is still accurate, but the incentive to buy shares is less clear.

Currently, the shares are around $900. Still a great article ... but whether the stock higher or lower, from this point, will be decided by sentiment. The underlying metrics don't support any particular price above $100.
EV_supporter profile picture

We can revisit this in 2030.
Tesla is running out of scams, and is probably trying to construct one around the robot. Overcapacity and plummeting profitability loom large as its old products peak out this year and fade into the dust in a few years. I'll miss them.
Israelstockinvestor profile picture
@julianbook You mean you weren't impressed with the guy in the robot halloween costume on their AI day?
Btw there is nobody in the industry (including tesla engineers that left) that thinks you can do level 4 ADAS (only Elon calls adas "fsd") with cameras and no lidar
@julianbook Overcapacity? Laughable.
@Israelstockinvestor FSD is level 2, has always been level 2, and will always be level 2. Tesla has said this.
Laura Lea profile picture
Not sure about this "soaring" anywhere long term until it breaks the bearish rising wedge underneath price. Then I will buy it again.
@Laura Lea The author specifically wrote in the title: Tesla "profit poised" to soar. That has nothing to do with technical analysis on the stock's share price. SMH
Laura Lea profile picture
@legendinvestor Nope. Charts are an Xray of supply and demand. It is the only way I trade so I apologize if I am waiting for an entry I feel safe with.
"New factories in Austin and Berlin and full self-driving software add further optionality and upward potential for shareholders."

There is no full self-driving software.
@TunnelUnderTokyo FSD is a set of 8 software features. 7 have already been delivered, and the last feature is currently in beta with over 60k users on it. Please join us back in reality.
solucky profile picture

" FSD is a set of 8 software features "

First its based on sensors that recognize close to nothing. FSD is a pipe dream and market manipulation...Tesla even lost the first court case here and fight now in the second round.
@solucky They didnt lose a court case. They just didnt get it dismissed, but I guess it was close.
NaturalBornSceptic profile picture
Article has merit. So Tesla should now be worth at least $170 rather than $140 from business metrics....
@NaturalBornSceptic Your business metrics are incorrect.
NaturalBornSceptic profile picture
@WillLong still on here then, talking it up. I took a rest from talking valuations and business metrics of the industry per se and just happily watched my big $1237 sell make me lots of moolah.

I feel sorry for all the retail punters who lap up the mythical business stories around Tesla and buy the stock at absurd multiples - at which it still trades.
@NaturalBornSceptic Antecdotal evidence aside, the people you speak ill of are the winners.
Durwood Dugger profile picture
First most major automotive companies have long been past optimal economies-of-scale and their profits never "soared past" their respective industry categories - typical of the automotive commodity industry produced with commodity materials.

While Tesla and EVs may behave somewhat differently than mature ICE mfgrs. as they transition from niche producers to commodity producers, but there is simply no way they can escape the commodity product economic limitations - and especially as EV competition continues to gin up - and EVs eventually pass one percent of all autos. Thinking that commodity mfgrs. can have high margins, is about like thinking you can ignore gravity and flap your arms and fly.

A mass produced commodity product, produced with commodity materials has always produced thin margins as the industry matured and competition became fierce. Tesla will be no different.
@Durwood Dugger don’t worry about that T isn’t an EV company
@Durwood Dugger When you add an operating system to a product, you see consolidation and higher margins. Phones, TVs are recent example.
Terroir23 profile picture
@Durwood Dugger You’re missing the software component.
Baslim profile picture
Arbitrarily deciding to give Tesla a 30% CAGR makes any further analysis useless. This is not the historical CAGR, it is not what management says, it is not the overall growth rate of BEVs. It does not take into account the relative costs of BEVs vs ICEVs. It does not look at the current demand and production characteristics it is a made up number higher than any other depreciable good so bears won't accept it.

The money in Tesla will be made in having a better understanding of Tesla's CAGR for the next few than the average financial analyst who assuming 30% which will never happen. If Tesla executes Tesla is growing at a CAGR of 40-50% about 10-20% of the time and and 50%+ 80% of the time until it reaches 10M-20M vehicles. If it fails to execute it will be near bankrupt because of its own hubris.
@Baslim idk, I liked hearing that even at that rate the price to sales ratio gets under 5 soon. It made a point
Envision Research profile picture
@Baslim I admit 30% is an assumption. Do you care to elaborate what your estimates would be? and why? Not trying to challenge, just genuinely interested in your approach.
Baslim profile picture
@Envision Research I use a binary. Does Tesla keep executing on Elon's visions and grow faster than any other large company in the history of the world or does Elon get forced out because he is an obnoxious prick who failed too much atone of the crazy risks he took?

If Elon is allowed to keep taking risks, profits will keep growing at least 50% and likely over 100% for the next 2 years. This puts 2026 annualized q4 profits discounted at 15% at $300. So even if Elon is kicked out for anti social behavior in 5 years. It will be as good of an investment as I can make.

Or he gets kicked out and I take my 30%-100% loss because he is now in jail or dead or exiled on an island.

As figuring out the probability of each is tuff I often use a 30%-40% CAGR for 10 years not that this number makes sense but it approximates what other are likely you and other wall streeters are using and I can guess where Tesla's stock price is likely to fall in the next year.

I would be better off trimming Tesla at the top of its band and buying at the bottom. Or just becoming a hermit who ignores Tesla for the next 10 years but I am far to addicted.

I try to find the biggest flaw in each Tesla article especially the long ones to see if I am missing something. Finding the flaws in bear articles is far easier.
Israelstockinvestor profile picture
Labor costs will grow significantly Auto workers in Berlin Austin and Fremont earn just a little more than workers in Beijing (base salary for factory workers =$773 a month) bottom 10% of tesla workers in the US earn $45k
@Israelstockinvestor rudimentary Tesla robots will work in Tesla factories as their first job.
If Boston Dynamics could do it Tesla will certainly have robots doing lots of work.
I bet Tesla has a better time filling jobs than most of their competition, car production line workers, AI specialists and software developers.
The free stock, cheaper car and buying even more stock at cut rate prices beats having to accept $17/hr at a UAW plant with no ownership. Instead you get a nasty, hateful combat with your employer as with UAW & their victim OEM's.
Germany might take a while to get fully staffed but it will be with exceptional hard working people.
@Israelstockinvestor Tesla`s 30% margin will easily cover additional labor costs.
Markjc63 profile picture
Inflation is rising fast , wages will have to rise too. All materials are rocketing. 30% margin is NOT in place now , can only go far lower.
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