Employee reveals: this is what Tesla earns per car sold

Good news

The senior staff member in question is Martin Viecha. The best man is Head of Investor Relations at Tesla, so he must keep good ties with investors. One way he does this is by delivering good news. Good news for investors, of course. At a technology conference held by US investment bank Goldman Sachs, Viecha revealed that Tesla spent an average of $84,000 to build a car in 2017. According to him, that has since dropped to just $36,000.

Production costs

That news must be music to the ears of Tesla investors. In America you have to pay at least $47,000 for a Model 3, in the Netherlands you pay at least 52,000 euros ($51,800) for Tesla’s entry-level model. Of course, Tesla incurs many more costs than just during the manufacturing process, but it seems the Americans are now grabbing a nice profit margin on their cars.

Efficient factory

Falling production costs are not due to cheaper batteries, according to Viecha, but to improved vehicle design. Simply put, current Tesla models are much easier to screw together, making the manufacturing process much more efficient.

New model

The Model 3 and Model Y currently make up the lion’s share of Tesla’s current sales, but according to Viecha, it is time for the automaker to introduce a cheaper EV. However, according to him, the demand for the Model 3 and Model Y is so high that it will probably be some time before a new entry-level Tesla vehicle arrives. The brand simply does not get there. In fact, according to Viecha, the Model Y is so popular that it will be the world’s best-selling car next year.