I dont have the exact numbers, but I read that
VW sold about 12 million cars last year,
Mercedes over 2 million,
Tesla less than 1 million.
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How can there be suge a huge difference in the worth of these companies?
In: 0
It’s not about sales volume, it’s about profitability and expected future profitability. Legacy car makers traditionally have slim profit margins, lots of legacy costs like union retirees with pensions and company-provided health insurance. Tesla doesn’t have generations of retired workers to support and has much higher profit margins on their cars, more growth opportunity and economies of scale with their gigafactories to produce batteries, further cutting production costs.
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