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Even when excluding regulatory credits and consumer tax incentives, Tesla’s automotive business remains profitable.

Cost of Goods Sold (COGS): As of late 2024 and early 2025, Tesla’s average cost to produce a vehicle dropped to an all-time low of under $35,000.

Gross Margin: Tesla’s automotive gross margin (excluding regulatory credits) has typically hovered between 15% and 18% recently. This means they earn several thousand dollars more per car than it costs them to build.