Part 11/15:
Tesla’s automotive gross margins are forecasted to improve slightly in Q4 to approximately 16.7%, approaching the highest levels since mid-2023. Nevertheless, there are challenges; costs are projected to increase in Q4 due to higher Cybertruck production costs. The autonomy segment, particularly Full Self-Driving (FSD), has seen improved take rates, possibly contributing to margins.
Energy Margins and Cost Optimization
Tesla’s energy storage margins have more than doubled over the past two years—from 11% to 30%—growing rapidly as deployment scales. Elon Musk describes this growth as "growing like wildfire", reinforcing energy’s pivotal role.