Markets
Charted: Tesla’s Unrivaled Profit Margins
Chart: Tesla’s Unrivaled Profit Margins
In January this year, Tesla made the surprising announcement that it would be cutting prices on its vehicles by as much as 20%.
While price cuts are not new in the automotive world, they are for Tesla. The company, which historically has been unable to keep up with demand, has seen its order backlog shrink from 476,000 units in July 2022, to 74,000 in December 2022.
This has been attributed to Tesla’s robust production growth, which saw 2022 production increase 41% over 2021 (from 930,422 to 1,313,851 units).
With the days of “endless” demand seemingly over, Tesla is going on the offensive by reducing its prices—a move that puts pressure on competitors, but has also angered existing owners.
Cranking up the Heat
Tesla’s price cuts are an attempt to protect its market share, but they’re not exactly the desperation move some media outlets have claimed them to be.
Recent data compiled by Reuters shows that Tesla’s margins are significantly higher than those of its rivals, both in terms of gross and net profit. Our graphic only illustrates the net figures, but gross profits are also included in the table below.
Company | Gross profit per car | Net profit per car |
---|---|---|
🇺🇸 Tesla | $15,653 | $9,574 |
🇺🇸 GM | $3,818 | $2,150 |
🇨🇳 BYD | $5,456 | $1,550 |
🇯🇵 Toyota | $3,925 | $1,197 |
🇩🇪 VW | $6,034 | $973 |
🇰🇷 Hyundai | $5,362 | $927 |
🇺🇸 Ford | $3,115 | -$762 |
🇨🇳 Xpeng | $4,565 | -$11,735 |
🇨🇳 Nio | $8,036 | -$19,141 |
Data from Q3 2022
Price cutting has its drawbacks, but one could argue that the benefits for Tesla are worth it based on this data—especially in a critical market like China.
Tesla has taken the nuclear option to bully the weaker, thin margin players off the table.
– Bill Russo, Automobility
In the case of Chinese EV startups Xpeng and Nio, net profits are non-existent, meaning it’s unlikely they’ll be able to match Tesla’s reductions in price. Both firms have reported year-on-year sales declines in January.
As for Tesla, Chinese media outlets have claimed that the firm received 30,000 orders within three days of its price cut announcement. Note that this hasn’t been officially confirmed by anyone within the company.
Tit for Tat
Ford made headlines recently for announcing its own price cuts on the Mustang Mach-E electric SUV. The model is a direct competitor to Tesla’s best-selling Model Y.
Chevrolet and Hyundai have also adjusted some of their EV prices in recent months, as listed in the following table.
Model | Old Price | New Price | Discount |
---|---|---|---|
Tesla Model Y Long Range | $65,990 | $53,490 | 18.9% |
Chevrolet Bolt EUV 2023 | $33,500 | $27,200 | 18.8% |
Tesla Model Y Performance | $69,990 | $56,990 | 18.6% |
Chevrolet Bolt 2023 | $31,600 | $26,500 | 16.1% |
Tesla Model 3 Performance | $62,990 | $53,990 | 14.3% |
Hyundai Kona Electric 2022 | $37,390 | $34,000 | 9.1% |
Ford Mustang Mach-E GT Extended Range | $69,900 | $64,000 | 8.4% |
Tesla Model 3 Long Range | $46,990 | $43,990 | 6.4% |
Ford Mustang Mach-E Premium AWD | $57,675 | $53,995 | 6.4% |
Ford Mustang Mach-E RWD Standard Range | $46,900 | $46,000 | 1.9% |
Source: Observer (Feb 2023)
Volkswagen is a noteworthy player missing from this table. The company has been gaining ground on Tesla, especially in the European market.
We have a clear pricing strategy and are focusing on reliability. We trust in the strength of our products and brands.
– Oliver Blume, CEO, VW Group
This decision could hamper Volkswagen’s goal of becoming a dominant player in EVs, especially if more automakers join Tesla in cutting prices. For now, Tesla still holds a strong grip on the US market.
Thanks, Elon
Recent Tesla buyers became outraged when the company announced it would be slashing prices on its cars. In China, buyers even staged protests at Tesla stores and delivery centers.
Recent buyers not only missed out on a better price, but their cars have effectively depreciated by the amount of the cut. This is a bitter turn of events, given Musk’s 2019 claims that a Tesla would be an appreciating asset.
I think the most profound thing is that if you buy a Tesla today, I believe you are buying an appreciating asset – not a depreciating asset.
– Elon Musk, CEO, Tesla
These comments were made in reference to Tesla’s full self-driving (FSD) capabilities, which Elon claimed would enable owners to turn their cars into robotaxis.
Markets
All of the World’s Exports by Country, in One Chart
We visualize nearly $25 trillion of global exports by country, showing you the top exporting nations and the data behind it all.

All of the World’s Exports by Country, in One Chart
In 2022, the total export value of global goods reached nearly $25 trillion.
With the evolution of international trade, the effects of globalization, and progress in technology, global trade has increased by around 300% over the last 20 years.
This visualization by Truman Du uses data from the World Trade Organization (WTO) to chart the world’s top exporters by country.
China is Still the “World’s Factory”
The world’s largest 11 exporters shipped out $12.8 trillion of goods in 2022, more than the rest of the world combined ($12.1 trillion).
The list is headed by China, with $3.6 trillion or 14% of total exports. The country has been the largest exporter of goods in the world since 2009.
Top 11 | Country | Exports (USD) |
---|---|---|
1 | 🇨🇳 China | $3.6T |
2 | 🇺🇸 U.S. | $2.1T |
3 | 🇩🇪 Germany | $1.7T |
4 | 🇳🇱 Netherlands | $965.5B |
5 | 🇯🇵 Japan | $746.9B |
6 | 🇰🇷 South Korea | $683.6B |
7 | 🇮🇹 Italy | $656.9B |
8 | 🇧🇪 Belgium | $632.9B |
9 | 🇫🇷 France | $617.8B |
10 | 🇭🇰 Hong Kong | $609.9B |
11 | 🇦🇪 United Arab Emirates | $598.5B |
In 2022, the top products exported from China by value were phones (including smartphones), computers, optical readers, integrated circuits, solar power diodes, and semiconductors.
Two of China’s primary trading partners are neighboring countries Japan and South Korea.
Mexico Surpasses China as America’s Largest Trading Partner
China has built up significant trade relations with the European Union and the United States, two of the world’s largest markets for goods.
However, recent trade tensions have led to China losing its status as the United States’ biggest trading partner in 2023.
Mexico has now overtaken China as the largest seller to the United States. This shift in trade dynamics is part of a broader effort by the U.S. to import goods from closer to home and reduce its dependence on geopolitical rivals.
The U.S. itself is the world’s second largest goods exporter, with over $2 trillion annually.
Canada was the largest purchaser of U.S. exports in 2022, accounting for 17% of total exports, followed by Mexico, China, Japan, and the United Kingdom.
The top exports of the United States are refined petroleum, petroleum gas, crude petroleum, cars, and integrated circuits.
The Regional View of Exports by Country
From a regional perspective, it’s clear Asia dominates the trading market with over 36% of the total exports, followed by Europe with 34%.

Source: World Trade Organization
While Asian, European, and North American countries have manufactured and technology products among their main exports, African and South American countries mostly export commodities such as oil, gold, diamonds, cocoa, timber, and precious metals.
A New Era of Deglobalization?
International trade grew immensely at the beginning of the 21st century, from $15.6 trillion in 2001 to $40.7 trillion in 2008.
Since then, protectionist trade policies such as taxes on foreign goods and import quotas have increased by 663%. Similarly, global trade as a percent of GDP has also stalled out, peaking in 2008 and going sideways ever since.
Despite many countries reducing their interdependence and integration in the post-COVID era, global exports are still set to grow by 70% between 2020 and 2030, reaching $29.7 trillion by 2030, according to Standard Chartered.
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