Usually profit margins shrink as volume goes up. You can't sell that many cars into the premium segment simply because the segment doesn't support the volume.
VW sells a ton of cheap and small vehicles.
VW sells a ton of cheap and small vehicles.
BMW - Market cap: $58.47 billion - Q3 units sold: 587,795
Daimler - Market cap: $85.59 billion - Q3 units sold: 517,800
It seems targetting volume could be detrimental to net profits under current/recent market conditions. Selling fewer, supposedly more upmarket vehicles has allowed Tesla to out perform VW.
Tesla outperforms VW because they are riding a wave and have been very successful in maintaining their lead in BEVs. That won't last and then the likes of VW and possibly Toyota if they ever get with the times are going to eat Tesla's lunch, especially if the chief twat is going to be distracted by his new toys.
Which inflates their unit numbers, exposes them to downturn risk, and doesn't really do much for their bottom line.
No, they are real sales.
> exposes them to downturn risk
On the contrary, those models are the most successful ones during an economic downturn.
> and doesn't really do much for their bottom line
On the contrary, those models are the mainstay of their business.
Really, three out of three, why bother?
Tesla has ~25% margins, VW has 3% margins. A recall, unsold stock or component shortages can quickly put VW in the red. This is what I mean by downturn risk, economic downturn is not the only potential problem manufacturing companies run into.
> Really, three out of three, why bother?
This level of communication isn't constructive.
Their premium brands tend to be hit very hard during those years (Porsche, for instance).
Yes, and this is exactly why comparing stock prices and expecting them to match units sold isn't useful.