Boycott US
Overview:
The community dedicated to boycotting the US until they stop fascism, restore full democracy and start following international law.
Americans have a moral obligation to resist Donald Trump and project 2025 at every turn.
America is a flawed democracy currently being ruled by oligarchs. Stop the backslide! Dont let America become the next Hungary.
America needs to challenge the court rulings of citizens united v. fec and shelby county v. holder, protect the media, implement independent district drawing, and the single transferable vote so they don't end up having people stay home in life-changing elections because they cannot vote for their favourite candidate.
Join 50501.chat to fight back!
Related communities:
Boycott:
!buycanadian@lemmy.ca
Activism:
!antitrumpalliance@lemmy.world
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Yeah Tesla and Rivian skipped the dealership model, but their pricing isn't any lower. Arguably higher, especially long term when you include repair costs.
Tesla also runs much higher margins than competitors. They could be cheaper, but they choose not to be.
After a quick search...
Ford's gross margins are about 8%.
GM is about 7%.
Kia is about 8%.
Toyota is about 9%.
Tesla is around 25-30%.
Rivian is around 2% it looks like (but they also build the Amazon fleet, which seems to not be included in the numbers I could find quickly).
Note that the legacy auto numbers are what the main company profits, not dealerships. The newer companies can pocket that directly.
A primary reason is newer companies like Tesla and Rivian are still building their manufacturing capabilities. That additional profit is going towards that expansion.
Tesla's margins are nowhere near 30%. They technically were there for like a single quarter. Even without all the insane accounting tricks they use, they're around 10% now, and it's likely that's a lie.
You're right, that was from a few years ago...
Their gross margin was 20%, up from 16% last year, and automotive margins actually increased from 15% to 18%.
https://www.investing.com/news/transcripts/earnings-call-transcript-tesla-q4-2025-sees-earnings-beat-stock-dips-93CH-4480867
The thing is though Tesla doesn't have any reason to sell cars cheaper. If the cost of a car from a dealership is X money they're going to base their cars value off that. They also don't need to undercut competition because they didn't really have any competition for the first few years and now the brand recognition (arguably most important part of selling cars) allows them to keep prices high as competitors entered their market.