Part 3/10:
In Tesla's world, margin expansion and innovation are the twin pillars supporting a high valuation. As an investor focusing on these aspects, the emphasis is on how Tesla improves its profitability through technological advancements and cost efficiencies.
Tesla’s gross margin, specifically on automotive sales, stayed flat from Q2 to Q3. On the earnings call, it was highlighted that, excluding the contributions from new gigafactories in Berlin and Austin, margins hover around 30%. This figure aligns with an expectation that ramping production, especially with newer factory efficiencies, should eventually lift margins higher.