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Thursday, January 5, 2012

Tesla Motors has the Highest Gross Margin in the Auto Industry


Tesla Motors has the Highest Gross Margin in the Auto Industry. Gross margin represents the amount of revenue retained after deducting direct costs associated with producing the goods or services which led to that revenue. The higher the gross margin as a percentage of revenue, the better.

Tesla Motors is highest with a gross margin of 29.9%. Tesla Motors, Inc. designs, sub-contract manufactures and sells high-performance electric vehicles and electric vehicle powertrain components. The Company owns its sales and service network and sells electric powertrain components to other automobile manufacturers including Toyota and Daimler.

Following is Ford Motor with a gross margin of 13.7% while General Motors comes in third with a gross margin of 13.0%.

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