Revenue from used vehicle sales surged by 68%, from $326 million last year to $548 million, and during just this year these sales have increased by 91% to around $1.65 billion in total.
Despite seeing upticks in used car sales, services, and other revenue sources, these increases only account for around 9% of Tesla's overall sales during the last quarter. The company has shifted its sales focus away from their more expensive models and toward the cheaper Model 3s which accounts for the lower average sale prices coming from sales on their website.
CEO Elon Musk has tried to sell the company's car models as something that will actually increase in value over time once they begin to introduce the self-driving technology updates into the cars. During the summer Musk even tweeted that he believes the cars should be worth somewhere between $100,000 to $200,000.
Musk is basing this off of the Tesla's potential to add autonomous driving and then potentially operating as apart of a ride-sharing network when the owner isn't driving.
In Tesla's financial filings the increase service revenue was primarily from owners repairing their cars. The company didn't detail what repairs or maintenance the vehicles needed, but only commented that they saw an increase "in non-warranty maintenance services."
Auto services is where traditional dealers find additional revenue and profits. In a report from the National Automobile Dealers Association, services and car parts make up around 1/3 of gross profit within the US for franchise dealerships.
In addition to services and used vehicle sales, Tesla also includes merchandise and "sales by our acquired subsidiaries to third party customers,” into their services revenue.
For merchandise specifically, Tesla didn't detail any particular success or failure. The company sells baseball caps, models of their cars, and Tesla accessories on their website and on Amazon.
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