As the helm of Tesla, Musk’s every move is the focus of the industry.
Recently, in Tesla’s internal conference call, Musk’s remarks have aroused heated discussions in the car circle: He said that Tesla can sell cars without profit!
So why did Musk dare to say this?
Tesla is already actively cutting prices
To understand why Musk dared to say “Tesla can sell cars at zero profit”, we can start with Tesla’s first quarter financial report.
Judging from Tesla’s first-quarter financial report, although Tesla achieved a 24% revenue growth in the first quarter, its net profit fell by as much as 24%.
However, the decline in Tesla’s net profit is intentional: Tesla’s electric cars have cut prices again.
Although Tesla has cut prices again, its net profit margin is as high as 10.77%, which is an excellent level in the automotive industry.
What’s more worth mentioning is that Tesla’s non-automotive business has reached the highest proportion of revenue in history. For example, solar energy and energy storage business have increased significantly. The substantial increase in non-automotive business turnover naturally makes Musk Looks full of confidence.
And in this conference call, autonomous driving has once again become the key content, and autonomous driving is another key factor for Tesla to dare to sell cars at zero profit.
Autonomous driving, Tesla’s profit direction
In Musk’s view, Tesla is not just a car company, but also the only company that produces cars from a technical perspective. FSD autopilot technology will be the key to Tesla’s future large-scale returns.
At present, the cumulative test mileage of FSD autonomous driving has reached an astonishing 150 million miles, and this number is still growing exponentially, and the accumulation of this cumulative test mileage will bring Tesla a car that is difficult for other car companies to match. data advantage.
FSD self-driving technology, coupled with the Dojo supercomputer, will make Tesla’s self-driving a service model with great value and can be sold externally, which is equivalent to Tesla’s mastery of the technological upstream and initiative in the field of self-driving , and its long-term value is likely to reach hundreds of billions of dollars!
Musk dares to say that Tesla can sell cars at zero profit in the future. One of the reasons is that Tesla’s non-automotive business has increased significantly. The main reason is that Tesla’s autopilot is already an industry-leading level, and Autonomous driving will be one of Tesla’s main profit points and core competitiveness in the future.