Forecast & Budget

 

These two forecasts shown in the graphs below, show the amount of units sold and the gross margin for Tesla in China. Both of them cover the years from 2015 to 2019. In order to develop these graphs, some of the numbers are a rough estimation and they include only the items listed. Therefore, costs such as administration and creation of the Gigafactory are not being covered.
 

Costs are going to increase over the future years, as Tesla is investing heavily in infrastructure in China. This is linked with the number of sales for Tesla. Once the tier 1 cities will be well covered, the costs should slowly decrease. Depending if a partnership with a local car manufacturer is possible, the costs will diminish.

 

The total revenue is linked with the units sold. The sales of the Model S could reach a stagnant point, but with its new facelift, sales should increase again. The launch of the Model X and Model III will substantially increase the sales of Tesla in China. It is important to take into consideration that sales can only decrease by a certain amount as the production is limited.