“Tesla stock soared for a few months starting in February following news that pre-orders for the electric-car maker’s Model 3, with a price tag of $35,000, were approaching 400,000 units. However, the rally has started to fade and I think the stock’s time to shine is over.
The Model 3 was Tesla’s play for an “affordable” electric car but it appears to be affordable for everyone EXCEPT Tesla.
Tesla loses more than $4,000 on each of its high-end Model S electric sedans; and that model’s cost is between $70 and $108k. With margins like that, one has to assume a $35k Model 3 can’t be the answer to solving Tesla’s red ink.
Tesla’s income statement reveals the company is hemorrhaging cash at a robust clip….”
The Center for Business and Responsible Government (CBRG) is a non-partisan organization dedicated to highlighting cronyism and its effect on American taxpayers and policy. We believe public officials should establish an even playing field for all businesses to compete in the marketplace, not just those special interests who line their pockets.