Image: Tesla
Tesla says the average cost of making its electric vehicles has fallen to its lowest point ever, and its most recent release – the Cybertruck – is also delivering a positive operating margin.
The company said in its Q3 earnings report released on Thursday morning (Australian time) that the it now costs the company an average of $US35,100 per vehicle to produce each vehicle, which is quite impressive given the upgraded level of premium trims it offers in its mass-produced models, such as the Model 3, compared to its previous generation model.
The reduced cost has allowed the company to pass on savings to customers, with local Tesla vehicles retailing at all-time low prices – albeit in the face of increased price competition, particularly from Chinese auto makers.
The Tesla earnings report celebrated the building of its 7-millionth EV globally, but also had mixed results, including revenue of $US25.1 billion, which came in slightly below expectations, and net operating income of $US2.2 billion.
The new milestone comes only 6 months after it reported that 6 million vehicles had been produced by its global factories.
Given the push to look into vehicles for the mass market, Tesla also continue to hint that more affordable models would be coming in 2025, despite the failure to unveil one, as had been hoped, at its recent Robot Day.
“We need to make EVs affordable for everyone, including making total cost of ownership per mile competitive with all forms of transportation,” it said in the report. “Preparations remain underway for our offering of new vehicles – including more affordable models – which we will begin launching in the first half of 2025.”
One other key insight to come out of the Q3 report was on its halo vehicle, the Cybertruck, which many in the automotive industry thought would never make it onto the roads.
Less than 12 months after initial customer deliveries of the steel-bodied utilitarian vehicle, the company has hit a positive margin: “Cybertruck production increased sequentially and achieved a positive gross margin for the first time.”
The news comes only days after it was revealed that the Cybertruck became the third best-selling EV in the US, outselling vehicles from every other brand.
One thing worth noting with the Cybertruck deliveries is that every unit so far has been the more expensive foundation series.
As more affordable variants and trims are produced, the cost per unit to produce will come down, helping Tesla increase that positive margin over time.
Riz is the founder of carloop based in Melbourne, specialising in Australian EV data, insight reports and trends. He is a mechanical engineer who spent the first 7 years of his career building transport infrastructure before starting carloop. He has a passion for cars, particularly EVs and wants to help reduce transport emissions in Australia. He currently drives a red Tesla Model 3.
In this episode of The Fully Charged Show Podcast, Robert Llewellyn sits down with Giles…
Trump administration has moved to suspend a $US5 billion program designed to fund the installation…
The head of phone manufacturing giant Xiaomi conducts epic, 15-hour test of its new electric…
Only two car brands are ready to use vehicle-to-grid technology so far, but more options…
BYD’s highly anticipated Sealion 7 has had its local specs revealed ahead of official launch,…
BYD launches more affordable city electric model in Europe as it expands globally, making the…
View Comments
There's no way to stop
DarkDork MAGA! 🤮Is it so hard to just talk about EVs on an EV site?
Ignore that elephant....... right ?.
As a Canadian (the mouse), living beside the US (the elephant), we have learned to sleep with one eye open just in case it rolls over in its sleep ha!
Hahaha!
Funny.
But also odd because it's been proven that elephants are afraid of mice.
My advice. Stop sleeping with them. Find somewhere secure to rest and enjoy life. I'm sure you have more natural predators to worry about.
Hanging around them for protection is more likely to get you stomped on in their frenzy.
$35,100 USD = $52,917.25 AUD on average across the fleet, impressive. Model 2 is the cyber taxi, just configured differently, same platform, which is a front wheel drive as a cyber taxi
So many promises and so much corporate puffery......we keep waiting.
Does that say more about Tesla not delivering or you and your patience levels?
My bet is not the model 2. Not many want 2 door 2 seater. My guess will be cheaper trim and less range in the existing 3 and Y bodies to get economies of scale. But only a guess....
When i say platform that doesn't equate to what is on top of it whether its 2 doors or 4 doors, but more to do with the length and width of the platform. Being a fwd or rwd shouldn't be constricted on that platform.
Model 3 & Y have the same platform but one is a 7 seater hatchback (but configured for 5 in our market) and the other is a sedan.
I'd say its a pretty good "guess" considering they've already said as much. They are intentionally quiet here because of the Osborne effect.
Ozzy Osborne got that nickname because he resembled Australians.
Dimwitted.
Wow, pot, kettle. Americans voted in trump 8 years ago and may well do so again, that's about the most dimwitted thing any country could do.
No! The Cybercab is going to be built on the new unboxed platform, ramping in 2026. The newer, cheaper models that get confused for the $25k models are actually going to be built on the same lines as the 3's and Ys in early 2025 so will probably be scaled down (cost/price wise) 3's and Y's.
The Model 2 won't be the Cybercab. Instead, it's expected to be a smaller version of the Model Y. So, it is expected to be a 4-door hatchback with a smaller wheel-base and battery, and a lower-cost interior, cheaper materials, simpler sound-system, etc.
I wonder what proportion of the cost reductions reflects plummeting battery prices and when those lower prices will flow to domestic battery cost reductions?
Still way more than the native Chinese automakers.
But that doesn't quite match the fossil fuel subsidies and tariff protection of Western governments. In fact successive Australian governments and people like you are the only suckers who think that free trade exists outside of economic theory.
I’m not sure that you can infer Tom’s thoughts from his post here.
The 'meddling' US government hides it's assistance in more complex and subtle ways.
or maybe "US government hides some of it's assistance"
remeber $trillion
Care to tell us where you got that figure from? Or just plucked from the air?
...And are selling at a loss?
A battery and an electric motor shouldn't be a complex proposition. The legacy mob have been given time to reform and adjust due to the Tesla BoD not being the least bit demanding of it's occasional CEO. What luck !.
I've heard of backyard operators retrofitting ice to bev, and yet others claim that EVs require a complete architectural redesign. Car makers complaining about scale economics. Isn't that what factories are for?
Right, I've done batteries and electric motors since I was 8 years old. It's been fun. Though with batteries and motors I have never engaged in casting stamping or heavy manufacturing, development of consumer products that are often in excess of $100,000, global supply chains and distribution, products with 10,000 or more unique parts, managing a workforce of over 130,000, nor homologation, safety rules and competition against world class manufacturers on multiple continents, but it seems that easy is a relative term.
I have to admit though, motors and batteries were always fun, and like you said, not a complex proposition, even for an 8 year old.
Ford said they don't have full control over all the elements that make their cars. They traditionally outsource many parts and play potential suppliers off against eachother for a lower price. To make and EV they've had to do a lot more themselves than they are use to.
I think you mean $210,000.
But either way it seems expensive for something that looks like a dustbin on wheels.
Quote from the Renew article on Tesla's proposition, EVs will not be a drain on the grid and the excess solar during the day.
"which mean Tesla often gets paid to charge its EVs."
Wondering why I pay 90c to charge my Kona on open Tesla super chargers?
We were charged 66c last week at Raymond Terrace.
They have surge pricing. But good on them for covering the enormous cost of providing an excellent charging network.
Thats 100% of those that have been available.
And your point is?
Now I know you just pluck figures from the air? Cybertruck in Aus dollars range from $92k - $150k - I mean that's so easy to find out - wherer did you get your $21000 from?