Because they’re not. Nowhere close. Although 32k/vehicle includes all fixed costs.

By my calculations, with current ASP and marginal unit costs, they need to sell about 35k R1 vehicles per quarter to achieve positive gross margin. For reference they sold about 12k last quarter.

So, yea. I don’t think they’ll get to positive GM before burning through all their cash.

Edit: I should give them more credit. I didn’t think they would ever achieve positive marginal unit economics, but the last two quarters have showed that they have.

They went from losing ~$160K per vehicle in Q2 2022 to $32K in Q2 2023. So at this pace, they could break-even within the next 2 or 3 quarters.