This is the Best Thing Tesla Did Last Quarter

Electric vehicle leader Tesla reported a significant cost of goods sold (COGS) metric in their Q4 2023 earnings results, showing their continued leadership in manufacturing efficiency. 

Tesla stated that their cost of goods sold per vehicle declined sequentially to just above $36,000 in the fourth quarter. This reveals major progress in Tesla’s efforts to optimize their production costs over time, allowing for possibility of higher margins.

Remarkably, Tesla achieved these cost reductions even as legacy automakers have generally seen rising COGS per vehicle over the past year due to supply chain challenges and inflationary pressures. This data came from MacroTrends.

Tesla noted that while they are reaching the limits of cost optimization on existing vehicle models, their teams remain dedicated to further cost cutting through manufacturing improvements, supply chain innovations, and designs that enable efficient production.

Our Thoughts

The ability for Tesla to keep driving down costs while maintaining their technology and quality leadership represents a key long-term competitive strength. As legacy automakers continues struggling with COGS inflation, Tesla extends their efficiency lead. Will Tesla be able to market and educate consumers on their products to achieve 50% year-over-year growth?

More Articles for You

It’s Cheaper Than A Tesla, Better Looking Than A Tesla And Has over 200K Bookings Already

Xiaomi is well-known in China and abroad for its range of hair dryers and smart air-conditioners but the influential corporation …

Iconic British Sports Car Company Reborn After Shutting Down 20 Years Ago

A well-known British sports car brand, thought to be extinct, has just been resurrected. Marcos Motor Company Ltd, which owns …

New Mercedes-Benz G580 Electric Debuts In Malaysia

Mercedes-Benz Malaysia (MBM) has unveiled the electric version of the Mercedes-Benz G580, featuring EQ Technology. If you want the G580 …

Design Legend Ian Callum Creates MINI Masterpiece For David Gandy

You hear the name Ian Callum and many car nuts immediately think of Jaguar, where Callum was design director for …

Bring Back Buttons And Switches Says UK’s Start Rescue

Are you like me? Do you lean towards dashboards with physical buttons? Especially cockpits with an audio volume button and …

Texas Puts Pressure On Tesla Robotaxi Rollout In Austin

Robotaxi is go. In certain areas of Austin, Texas, Tesla’s robotaxi service has commenced operations by providing invite-only trips to …