Tesla Gross Profit Per Car And Gross Margin Per Car

Tesla Motors in Menlo Park. Source: Flickr

This article presents Tesla’s gross profit per car and gross margin per car.

Please use the table of contents to navigate this page.

Definitions

To help readers understand the content better, the following terms and glossaries have been provided.

Automotive Gross Profit: Tesla’s automotive gross profit is defined as automotive sales revenue, excluding automotive leasing and regulatory credits revenue, minus automotive cost of revenue.

Here is the formula:

Automotive Gross Profit = Automotive Sales Revenue (Excluding Automotive Leasing And Regulatory Credits Revenue ) – Automotive Cost Of Revenue

Gross Profit Per Car Calculation: Tesla’s gross profit per car is defined as the automotive gross profit, which we saw earlier, divided by the number of vehicle deliveries, excluding vehicles subject to operating lease.

Here is the formula:

Gross Profit Per Car = Automotive Gross Profit / Total Number Of Vehicle Deliveries Not Subject To Operating Lease

Back To Table Of Contents

Automotive Gross Profit

tesla-automotive-gross-profit

(click image to expand)

The definition of Tesla’s automotive gross profit is available here: automotive gross profit.

Tesla’s automotive gross profit has significantlt risen over the years, reaching a record high of $17.6 billion in fiscal year 2022. However, in fiscal year 2023, the automotive gross profit declined by over 20% to $13.4 billion.

Although Tesla’s automotive gross profit dived significantly in 2023, it was still one of the highest profit ever recorded. Compared to the automotive gross profit of $11.7 billion recorded in 2021, the 2023 result represents an increase of 15%.

Back To Table Of Contents

Gross Profit Per Car

tesla-profit-per-car

(click image to expand)

The definition of Tesla’s gross profit per car is available here: gross profit per car.

Tesla’s gross profit per car dived to $7,700 in fiscal year 2023 from $13,900 in fiscal year 2022, representing a decrease of 45% year-over-year, nearly half of the profit produced in 2023.

Prior to 2023, Tesla’s gross profit per car has been steadily on the rise, driven by the growing automotive gross profit. However, in 2023, it significantly plummeted, primarily driven by the decrease in the automotive gross profit which we saw in earlier discussion.

Despite the decline, Tesla’s gross profit per car has averaged $11,700 between fiscal year 2021 and 2023, still a significant number considering that the company is making a gross profit of more than $10,000 per vehicle.

Back To Table Of Contents

Gross Margin Per Car

XXXXX

(click image to expand)

The definition of Tesla’s automotive gross profit is available here: automotive gross profit.

Tesla’s gross margin per car was as much as 26% in 2022 and it dived to 17% in 2023. On average, Tesla’s gross margin per vehicle was 23% between 2021 and 2023.

Back To Table Of Contents

Summary

Tesla’s gross profit per car significantly plunged in 2023, reaching just $7,700 per vehicle, the first time the company produced a profit per car of less than $10,000 since 2018.

Back To Table Of Contents

References and Credits

1. All financial figures presented in this article were obtained and referenced from the company’s SEC filings, earnings releases, investors presentations, update letters, quarterly and annual reports, etc., which are available in Tesla Annual and Quarterly Results.

2. Featured images were used under Creative Common Licenses and obtained from Wesley Fryer and Thomas Hawk.

Back To Table Of Contents

Disclosure

References and examples such as tables, charts, and diagrams are constantly reviewed to avoid errors, but we cannot warrant the full correctness of all content.

The content in this article is for informational purposes only and is neither a recommendation nor a piece of financial advice to purchase a stock.

If you find the information in this article helpful, please consider sharing it on social media and also provide a link back to this article from any website so that more articles like this one can be created in the future.

Thank you!

Back To Table Of Contents