Tesla’s new Giga Shanghai-produced Model Y has a 29.4% gross margin, according to Guosen Securities, who analyzed the cost of building the car compared to its selling price.
According to the Shenzhen, China-based financial firm, Tesla’s China Model Y only costs ¥237,930 (USD 36,852) to produce. However, its selling point gives Tesla a 29.4% gross margin with a price of ¥339,900 (USD 52,646.25). Due to the current demand for the all-electric crossover that just started being produced at Giga Shanghai, Tesla has plenty of room to come down. The company will likely do this after the demand is sustained for several months because the automaker did the same thing with the Model 3 after its initial gross margin was also turning Tesla a tasty profit.
According to Guosen Securities, the cost of MIC Model Y is ¥237,930 while it currently sells for ¥339,900. That’s 30% gross margin. Over time, there is room for price to drop down to 260k while maintaining 25% gross margin. Elsewhere a report says LFP MY may debut in late 2021. pic.twitter.com/PkEoV6Vqpt
— Ray4Tesla⚡️?☀️? (@ray4tesla) January 5, 2021
Tesla’s gross margins for the Model Y are around three-times the industry average, which hover between 8-10% for luxury cars. This means Tesla is making around three times the amount of money per unit compared to any other carmaker. While demand continues to remain healthy for Tesla’s cars based on 2020 sales figures, the company is churning plenty of profitability from its Giga Shanghai-produced cars.
In June 2020, it was reported that the Model 3 SR+ that was delivered by Tesla in Q1 had a gross margin of 39.37%. This means that with its ¥271,550 price tag (USD 42,059.69), the vehicle actually cost ¥188,700 to produce (USD 26,653), Sina indicated.
The price of the Model 3 has decreased since the June 2020 report. Tesla’s base Model 3 in China now has a price of ¥249,900 (USD 38,706.38). This would be around a 24.5% gross margin if the cost to produce hasn’t changed. However, it likely has, and even if it hadn’t Tesla is still turning a profit that is more than 2.5 times the industry average.
In late December, Tesla China VP Grace Tao indicated that the company’s localization supply goal had been “basically” achieved. This effectively closed the door on the Model 3’s prices being reduced, which had occurred five times in the vehicle’s first year of availability in China. Once was due to the company’s desire to reach government incentives’ qualification, as the SR+ variant was reduced to under ¥300,000.
Reports from China indicate that demand for the new Model Y is healthy, and showrooms in the country with the largest automotive market were filled with prospective buyers just after launch.
Tesla showrooms get volunteer help amid Made-in-China Model Y launch
China has been one of Tesla’s main contributors to its 500,000 vehicle goal, which the company announced it accomplished last weekend. While exact figures are unknown, the Tesla Model 3 has dominated Chinese EV sales figures for all of 2020. Data from the EV Sales Blog indicates that the Model 3 has sold 116,119 units in China in 2020 and has been battling with the GM-backed Wuling HongGuang Mini EV, which is the only close competitor to Tesla’s affordable sedan so far.
What do you think? Leave a comment down below. Got a tip? Email us at tips@teslarati.com or reach out to me at joey@teslarati.com.
News
Tesla to lose 64 Superchargers on New Jersey Turnpike in controversial decision
Tesla is set to lose 64 Superchargers on the extremely busy and congested New Jersey Turnpike.

Tesla is going to lose 64 Superchargers on the New Jersey Turnpike after a decision by the Turnpike’s governing body was made not to renew its contract with the automaker.
On Friday, Tesla revealed that the New Jersey Turnpike Authority (NJTA) had officially decided to choose a sole third-party provider for its electric vehicle infrastructure. This resulted in the NJTA not renewing its contract to keep Tesla Superchargers on the toll road.
The NJTA also requested, with its decision not to renew with Tesla, that the company decommission all 64 Supercharger stalls, an unprecedented decision that will remove these plugs from the turnpike, making charging more scarce on the busy roadway.
The New Jersey Turnpike Authority (“NJTA”) has chosen a sole third-party charging provider to serve the New Jersey Turnpike and is not allowing us to co-locate. As a result, NJTA requested 64 existing Supercharger stalls on the New Jersey Turnpike to not be renewed and be… pic.twitter.com/sosNIwMfYu
— Tesla Charging (@TeslaCharging) May 30, 2025
Tesla detailed the situation on Friday:
“The New Jersey Turnpike Authority (“NJTA”) has chosen a sole third-party charging provider to serve the New Jersey Turnpike and is not allowing us to co-locate. As a result, NJTA requested 64 existing Supercharger stalls on the New Jersey Turnpike to not be renewed and be decommissioned.”
Tesla said it has been preparing for the potential that the Turnpike Authority would make this decision for three years by building 116 Superchargers nearby to still supply drivers with reliable charging infrastructure.
The company also noted that its Trip Planner would adjust automatically.
There were also efforts to maintain a relationship that would benefit both the Turnpike and EV drivers who use it.
Tesla said it offered the NJTA various “above-market commercial items,” like an offer to build Superchargers at all New Jersey Service Plazas with equipment upgrades like screens and adapters for those companies who have gained access to its charging piles but need to utilize the NACS and CCS1 plugs.
The decision is one that seemed to baffle the company, especially as infrastructure is one of the biggest concerns among EV skeptics:
“Tesla always advocates for more infrastructure and co-location with additional third-party charging providers. This drives down costs through optionality, and accelerates EV adoption by having sufficient capacity to shoulder peaks. We expect that ~30 times more fast-charging capacity is needed to get to full EV adoption. NJTA’s decision to remove, rather than add, critical charging infrastructure is a setback for New Jersey’s EV adoption goals of 100% Zero-Emission New Car Sales by 2035. It removes Turnpike access to the most reliable (99.9% uptime), least congested (<1% waiters) and cost-effective (~30% lower $/kWh) charging. “
The company said it was more than willing to invest in Turnpike sites if the Authority or New Jersey Governor Phil Murphy wanted to reverse the decision.
News
SpaceX hit with mishap investigation by FAA for Starship Flight 9
Starship’s ninth test flight has the FAA requiring a mishap investigation from SpaceX.

SpaceX has been hit with yet another mishap investigation by the Federal Aviation Administration (FAA) related to the company’s ninth test flight of Starship earlier this week.
The FAA said the mishap investigation is “focused only on the loss of the Starship vehicle, which did not complete its launch or reentry as planned.” The agency said the loss of the Super Heavy booster is covered by one of the FAA’s approved test induced damage exceptions requested by SpaceX.
All of Starship and Super Heavy booster debris landed within the designated hazard areas, the FAA confirmed.
It said it activated a Debris Response Area out of an abundance of caution as the booster “experienced its anomaly over the Gulf of America during its flyback toward Texas. The FAA subsequently determined the debris did not fall outside of the hazard area. During the event there were zero departure delays, one flight was diverted, and one airborne flight was held for 24 minutes. ”
SpaceX has become accustomed to mishap investigations by the FAA, as they have been impacted by them on several occasions in the past, including on Flight 8. However, they are a precautionary measure and usually are resolved within a few weeks.
Flight 9 was one of SpaceX’s most eventful, as there were several discoveries during the launch. First, it was SpaceX’s first time reusing a Super Heavy booster, as the one utilized for Flight 9 was also used on Flight 7 in January.
Contact with the booster and Starship were both lost during Flight 9. SpaceX said the booster was lost “shortly after the start of landing burn when it experienced a rapid unscheduled disassembly approximately 6 minutes after launch.”
Meanwhile, Starship was set to make a splashdown in the Indian Ocean, but the vehicle was lost about 46 minutes into the flight, SpaceX said in a mission recap.
It was an improvement from the previous two flights, as both 7 and 8 resulted in the loss of Starship after just a few minutes. Flight 9 lasted considerably longer. These flights are also not intended to make it to Mars, despite what other reports might try to tell you.
These are ways to gain information for when SpaceX eventually tries to get Starship to Mars.
Investor's Corner
Tesla bull writes cautious note on Robotaxi launch: ‘Keep expectations well contained’
Morgan Stanley’s Adam Jonas is more cautious about Tesla’s upcoming Robotaxi launch.

Tesla analyst Adam Jonas of Morgan Stanley is telling investors to be wary of the Robotaxi details CEO Elon Musk revealed this week, after a report seemed to land on the prospective launch date of the platform in June.
Earlier this week, a report from Bloomberg indicated Tesla had internally landed on a tentative date of June 12 for its Robotaxi launch in Austin. Shortly after, Musk detailed the successful testing Tesla has already performed without anyone in the driver’s seat.
He also indicated Teslas would self-deliver to customers in June.
Analysts are now sending out investor notes on the announcement Musk made, along with the Bloomberg report. Jonas’s note is more cautious than others.
Jonas believes Tesla needs to shed more details before investors and fans of the company get too excited. He believes there is more information that could be released, but until then, he is suggesting investors “keep expectations well contained.”
He wrote:
“As is typical for highly anticipated Tesla events, we would keep expectations well contained for the (reported) June 12th Cybercab launch event in Austin. However, we would look for a continued stream of updates for the performance and growth of the network thereafter (numbers of cars, miles, trips, etc.) in the days and weeks that follow.”
The tone of Jonas’s note contradicts that of Wedbush’s Dan Ives, who believes the “golden age of autonomous” lies in Tesla’s hands. He seems to believe Tesla will come through on its June 12 launch.
Tesla set for ‘golden age of autonomous’ as Robotaxi nears, ‘dark chapter’ ends: Wedbush
Morgan Stanley’s note is slightly more
Jonas is obviously still bullish, but is much more tentative to move forward with an attitude that communicates skepticism about what Tesla has revealed.
Jonas and Morgan Stanley have a $410 price target on Tesla shares with a ‘Buy’ rating. Tesla stock is trading at around $358 at 12:15 p.m. on the East Coast.
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