Part 6/12:
The recent data prompted an overhaul of Tesla's financial modeling, particularly around margins and pricing assumptions:
Price per mile: Previously estimated at $1 per mile, the new assumption posits that Tesla can charge $3 per mile, potentially reaching $4 in optimal scenarios to match high-end market bids.
Cost per mile (Cogs): Reduced to $1 per mile, down from earlier estimates, driven by Tesla’s efficient manufacturing and automation.
Free Cash Flow (FCF) per mile: With these inputs, Tesla's expected FCF margins improve substantially, with the differential between revenues and costs reaching $2 per mile initially, trending toward $1 per mile as scaling efficiency improves.