Tesla is the first US car manufacturer to mass-produce vehicles without going into bankruptcy in the past 100 years (and now has a larger market cap than the next six largest automakers combined).

Since 2017, Tesla’s capital expenditure per incremental unit of capacity has improved from ~$84,000, when the Model 3 was ramping, to ~$7,700. While these improvements indicate that Tesla could continue to increase margins, the more important takeaway is that capital no longer is a bottleneck limiting its growth. Instead, Tesla should be able to gr... See more