Part 4/10:
An important detail emerged: a significant foreign exchange impact of approximately $250 million—a 1.4% reduction in gross margins—was noted. This currency fluctuation negatively affected profitability but is generally considered external and temporary.
Additionally, raw material procurement practices influence margins. Having observed manufacturing firsthand, it was explained that Tesla, like other companies, purchases raw materials well in advance—sometimes a year ahead. If raw materials were bought at peak prices and the company is selling cars now, margins could be compressed, despite higher vehicle prices. This lag in raw material costs can temporarily hinder profit margins even as vehicle revenues increase.