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Cayden Thompson

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Cayden
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Oregon
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Model Y
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Project Engineer
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Right, I totally get that.

Sometimes companies make a mistake, or a conscious decision to leave lots of money on the table as a marketing/branding expense but, generally the goal of every business is to maximize the value of the company (and by extension, the employees time and effort) by not selling things for substantially below what the market says they are worth.

Historically, Tesla employees who who have stuck around for 5-10 years end up being very well-compensated for their contributions due to the stock options that every employee is granted as part of their compensation package (along with healthcare, etc.). This extends down to the most entry level positions including janitors and assembly line workers.

This is the real engine of the American economy and what the far left with radical socialistic ideals that hate Elon/Tesla don't seem to grasp. I'm not making the mistake of thinking you are in that misguided group, just pointing out that creating *real* value to society (specifically, value to the consumer that the corporation can profit from) is what drives economies and lifts people from poverty. Tesla is very good at this. Contrast it to almost all other EV manufacturers who sell their EVs at a loss. While it's OK to take a long-term view and have a plan to become profitable, selling at a loss doesn't drive the economy and create a net benefit to society. Selling at a loss is the tell-tail that the economic activity of that product is not productive (and capitalism is pretty good at encouraging productive behavior and putting an end to non-productive behavior). This is the reason legacy auto sells EVs in such low volumes, even though they know EVs are the future.

I'm convinced Tesla is still paying off their investment in the Cybertruck and have not yet made a net profit on Cybertruck sales. They are working relentlessly to lower the cost of production, lower warranty expenses, lower the cost of delivery and making small improvements to increase value to the consumer, and increase volumes to bring the Cybertruck into net profitability. It's a long, difficult process that requires constant attention and dedication at every level. Auto production is hard. That's why I like to see that Tesla is not giving away their goods below the price that makes sense. The development of FSD alone has cost many billions of dollars and it's about to pay off to society big time in the form of cleaner air (autonomy will drive higher adoption of EVs), lower healthcare costs (both from far fewer debilitating accidents and also less pollution causing diseases like emphysema, cancer, etc.) more productive employees (due to easier commutes), lower auto insurance costs (due to fewer injury accidents and deaths), cheaper ride-hailing, etc. etc. etc. The autonomy that we are on the cusp of realizing is a bigger benefit to our standard of living, both economically and also in the direct sense of life being better, than most people are even capable of understanding at this point in time.
Cybertruck is selling at a gross profit.

Q3 2024 earnings call: “Cybertruck production increased sequentially and achieved a positive gross margin for the first time.”
 
 








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