- New cars are subject to sales tax
- In some states (e.g., California), there are additional fees buried in DMV registration costs. California's Vehicle License Fee (VLF) is based on the depreciated value of the car. So newer and more expensive cars pay more to use the roads than do older cars. So the VLF is effectively another tax on new cars.
"Profitability" is a momentary property.
You could make ICE cars unprofitable by charging less than they cost to make too.
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.