Tesla automotive does not have a 20% margin, it's much closer to 10%. In the '18-H letter they claimed 20% margins including ZEV/GHG credits and added back Services & Other (in all Tesla 10-Q's the Services & Other are subtracted). Tesla calculates gross margin by not only including the ZEV/GHG credits but by basing the margin on the retail price of the vehicle rather than the bulk invoice. Cost of stores and R&D expense are also omitted from the gross margin.
>I am looking at Q2 statement and gross margin before ZEV is 20%. With ZEV it is 21%.
The statement given is ex ZEV and stock based comp, not ex ZEV/GHG and Services/Other. ZEV/GHG accounted for ~2% of margin in the first half of 2018 while Services/Other accounted for a little over 5%. Check the 10-Qs.
> Also, gross margin is literally margin after cost of goods. Doesn't include SG&A expense.
Most OEMs use the delta between the retail price and the bulk invoice including cost of stores to calculate their margin.
Sorry, it took me a while to get back. Why would stock based comp be included in gross margin ? That is not part of Cost of Goods sold. That is reflected in net income.
I have no idea what your last statement means. There is US Accounting definition of what gross margin is and it is Revenue - Cost of Goods. Other expenses such as compensation, stores, are part of operational expense and it included in net income.
