Up to 8% Cost Improvement from Tesla Berlin and Austin in 2022

Colin Rusch of Oppenheimer is ranked 17th out of 7616 analysts and he indicates that Oppenheimer research predicts that Tesla Berlin and Tesla Austin will be able to generate 5-8% cost improvement in 2022.

Tesla Q2 2021 financials showed that they had their highest automotive margins ever. This was in spite of not producing only low volumes of the refreshed higher margin model S. The Plaid model S sells for $129,900 instead of about $50,000 for the Model 3 and Model Y.

This third quarter should see about 10,000 Model S made instead of 2000. This should see the auto margin increase from 28.4% to 30-31%.

Berlin and Austin will not produce in significant volumes until Q1 of 2022. A 5-8% margin increase would be 36-39% from Q3 or if it was from Q2 would be 33.4-36.4%.

The quarterly number of cars produced should nearly double by Q2 2022. The revenue increase to $20 billion and an overall auto margin increase to 33% would mean $6.6 billion of auto gross profit in Q2 2022.

Operating expenses at $2 billion would mean about $4.6 billion in income.

SOURCES- Solving the Money Problem, Tesla, Oppenheimer
Written By Brian Wang, Nextbigfuture.com (Brian has shares of Tesla)