Tesla investor relations chief Martin Viecha told a Goldman Sachs conference that production cost per vehicle is the most important metric in determining how many vehicles the brand can make, as well as how big it can become as a manufacturer. To reinforce his point of view, Viecha announced that Tesla had a cost of $84,000 per vehicle produced in 2017, a figure that dropped to just $36,000 in 2022. It’s a 57% reduction.
Five years ago, Tesla produced the Model S and Model X, adding the Model 3, still in relatively small numbers, and all three models were produced only at the plant in Fremont, California. In 2022, the picture is very different, already with the fourth model in the range, the Model Y, and with factories in China, Germany and Texas. Fremont still accounts for about half of Tesla’s output, but it’s cheaper to make in Shanghai and Berlin, according to Martin Viecha.
With the production volume increasing 15 times, from about 100,000 units/year in 2017 to about 1.5 million/year forecast for 2022, it is natural that production costs have fallen, result of such investment. still so, maintain selling prices while production costs have been reduced by more than half It does wonders for the financial health of any builder. This explains why the North American manufacturer of electric vehicles announces annual net profits of over 20%.
Source: Observadora
