Wednesday, August 12, 2015

No, Tesla doesn’t lose $4,000 every time they sell a Model S

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Since Tesla’s second quarter earnings report, catchy headlines have been popping up saying the company is losing $4,000 for every car sold. That figure has been arrived at by some simple math: Tesla reported an operating loss of $47 million for April, May, and June, and in that time, they sold 11,532 cars. Divide the loss by the number of cars sold and you arrive at a $4,000 loss per car. Except, as any Chief Financial Officer will tell you, companies are far more complicated than that.

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