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U.S. Dealers In Full Panic Mode After Canada Green-Lights Chinese Cars (www.thedrive.com)
submitted 9 months ago by to c/boycottus@lemmy.ca
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[–] 12 points 9 months ago (3 children)

Yeah Tesla and Rivian skipped the dealership model, but their pricing isn't any lower. Arguably higher, especially long term when you include repair costs.

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  • [–] 6 points 9 months ago* (2 children)

    Tesla also runs much higher margins than competitors. They could be cheaper, but they choose not to be.

    After a quick search...
    Ford's gross margins are about 8%.
    GM is about 7%.
    Kia is about 8%.
    Toyota is about 9%.
    Tesla is around 25-30%.
    Rivian is around 2% it looks like (but they also build the Amazon fleet, which seems to not be included in the numbers I could find quickly).
    Note that the legacy auto numbers are what the main company profits, not dealerships. The newer companies can pocket that directly.

    A primary reason is newer companies like Tesla and Rivian are still building their manufacturing capabilities. That additional profit is going towards that expansion.

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  • [–] 5 points 9 months ago (1 child)

    Tesla's margins are nowhere near 30%. They technically were there for like a single quarter. Even without all the insane accounting tricks they use, they're around 10% now, and it's likely that's a lie.

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