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by dmode 2846 days ago
Can you point to a source ? I am looking at Q2 statement and gross margin before ZEV is 20%. With ZEV it is 21%. It's on page 2 here

http://ir.tesla.com/static-files/7235e525-db16-470c-8dce-9ec...

Also, gross margin is literally margin after cost of goods. Doesn't include SG&A expense.

1 comments

>I am looking at Q2 statement and gross margin before ZEV is 20%. With ZEV it is 21%.

The statement given is ex ZEV and stock based comp, not ex ZEV/GHG and Services/Other. ZEV/GHG accounted for ~2% of margin in the first half of 2018 while Services/Other accounted for a little over 5%. Check the 10-Qs.

> Also, gross margin is literally margin after cost of goods. Doesn't include SG&A expense.

Most OEMs use the delta between the retail price and the bulk invoice including cost of stores to calculate their margin.

Sorry, it took me a while to get back. Why would stock based comp be included in gross margin ? That is not part of Cost of Goods sold. That is reflected in net income.

I have no idea what your last statement means. There is US Accounting definition of what gross margin is and it is Revenue - Cost of Goods. Other expenses such as compensation, stores, are part of operational expense and it included in net income.

https://en.wikipedia.org/wiki/Gross_margin