A new report from Guosen Securities, highlighted by @ray4tesla on Twitter, says that Tesla Inc TSLA has some impressive margins on the Model Y that was just released in China.
The report says the Model Y costs Tesla 237,930 yuan ($36,800), but the company is selling the vehicle for 339,900 yuan ($52,600).
Guosen Securities expects that over time, Tesla may lower the price of the Model Y, as it's done with previous vehicles over the years, while maintaining a 25% margin. The price could go as low as 260,000 ($40,200), the firm said.
The report also mentions the LFP battery version of the Model Y may be coming later in 2021. This points to a lower-cost version of the Model Y, similar to the Model 3 version Tesla debuted in China last year.
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Benzinga's Take: If accurate, these margins are impressive. And if Tesla can lower the price of the Model Y to around $40,000, the competition will have a hard time catching up. Tesla already beats out competitors on range and driver assist features, with brand loyalty comparable to Apple.
Photo courtesy of Tesla.
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