As is the case for every business, generating revenue while minimizing expenses is of the upmost importance. This is no different for automakers like General Motors, where profit margins remain high on the priorities list. With that in mind, statistics can often be misleading, as it appears as though Tesla is earning more profit per employee then GM despite posting comparatively subpar revenue per employee figures.
As covered in a video from Autoline, Tesla makes an estimated $680,000 in revenue per employee, while General Motors and Ford make $1,054,000 and $937,000 in revenue per employee, respectively. Glancing over the numbers, it certainly appears as though Tesla is trailing its competitors by a wide margin. However, it becomes clear that this is not quite the case when digging deeper.
In regard to the amount of profit each automaker generates per employee, Tesla stands tall over its competition. More specifically, the all-electric automaker rakes in an estimated $4,916 in profit per employee, while GM and Ford make $1,626 and $1,237, respectively.
As for potential reasons behind this substantial discrepancy, one of the more notable possibilities has to do with outsourcing. Automakers like General Motors and Ford source a good deal of parts and materials for their vehicles from third-party suppliers, while Tesla makes a majority of its parts in-house.
In other GM profit-related news, GM Authority recently reported that General Motors’ roughly 45,000 U.S. hourly workers represented by the UAW union will receive near-record profit-sharing check this year. In fact, the $12,250 payout is the second-highest profit-sharing check since 2016. Beginning disbursement in February 2024, hourly employees must have accrued 1,850 compensated hours or more over the course of the 2023 calendar year to qualify for the full payout.
In addition, even temporary employees represented by the UAW, as well as those at Ultium Cells battery facilities across the United States, are now eligible for profit-sharing checks for the first time ever.
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Comments
Take out Teslas sale of carbon credits and now what is thee profit per employee.
That’s easy as it was 14% of gross profit, therefore Tesla makes $4228 vs $4916 profit per VEHICLE not counting the carbon credit purchases from automakers not making minimum CAFE standards set by the EPA. Still well over 2x GM and 3x Ford.
Those ESG ratings don’t come cheap, lol.
GM has a higher Environmental, Social and Governance (ESG) score, 30.3 vs 25.3 for Tesla
Yet 100% of Tesla’s products are environmentally friendly. The Social is where Tesla falls down because the ESG crowd doesn’t like Musk. Remember, Exxon Mobile has a higher ESG score than Tesla.
GM Authority made the same error as Autoline – “As covered in a video from Autoline, Tesla makes an estimated $680,000 in revenue per EMPLOYEE, while General Motors and Ford make $1,054,000 and $937,000 in revenue per EMPLOYEE, respectively”. The following should read: “In regard to the amount of profit each automaker generates per VEHICLE / not employee , Tesla stands tall over its competition. More specifically, the all-electric automaker rakes in an estimated $4,916 in profit per VEHICLE / not employee, while GM and Ford make $1,626 and $1,237, respectively”. That’s because to avoid additional UAW labor costs GM and Ford outsource over 80% of the content in their vehicles to suppliers while Tesla is much more vertically integrated paying workers to build components. Hence why Tesla has, by far, more USA content than any GM car – see American made index – Tesla #1-4, top spot for GM is at #33 Canyon/Colorado.
Didn’t GM just hand out $12,000 in profit sharing checks to employees? Agree, the article must be incorrect in stating that the $1,237 is profit per employee. It makes no sense as written.
Direct copy/paste from Autoline – other sites did the same thing, but now a few are making the obvious correction.
Elon needs more of that profit for himself.
It’s not Rocket Science. … oh wait …..
Comparing apples to cucumbers.