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Comment by drewg123 | Hacker News Reader

Can they sell them at a profit, or have they saturated the market now? I heard they actually have enough inventory that they were doing same day deliveries and offering end-of-quarter incentives. That's great for customers, but not so much for a company that is not profitable.

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Gross margins for model S and X are 25%+. The model 3 is supposedly profitable, at the scale that they have now achieved. Tesla's big spend is on R&D on new product lines, and ramping up production. In other words: their core business has long been cash flow positive. It's the growth that is requiring all the cash and creating short term losses.

I mean look at Amazon. They are basically on their last legs after doing the same idea. /s

Anecdotal, but a friend's model 3 was originally scheduled for delivery today and got a text last night letting them know it would be delayed about a week, so it's not clear if they're starting to fluff Q4 numbers or if there was an operational or logistics issue of some sort.

So far no Model 3 has been sold outside of the USA, so it is somewhat premature to worry about having saturated the market.

They are sold in Canada as well, I see them all the time.

Fair enough, but Canada is the only country outside of the USA you can get it. So this doesn't really change my point.

They are still manufacturing premium version. People are still waiting on $35k one.

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