Tesla Annual Gross Margin over Operating Margin
Investigate Tesla's operational efficiency with our thorough chart illustrating the Gross Margin alongside the Operating Margin. Gross Margin, a key profitability indicator, is the percentage of total sales revenue that the company retains after incurring the direct costs associated with producing the goods and services it sells. Conversely, Operating Margin is a measure of profitability that shows how much profit a company makes from its core operations, before subtracting taxes and interest charges. It's calculated by dividing the operating income (or operating profit—the residual profit after subtracting direct costs and operating expenses) by total revenue. This comparative visualization provides a window into Tesla's efficiency in managing both its direct production costs and overall operating costs, painting a more nuanced picture of the company's financial health.