Tren Griffin @trengriffin I work for Microsoft. Previously I was a partner at Eagle River, a private equity firm established by Craig McCaw. I am on the board of directors of Kymeta. Sep. 13, 2019 1 min read

The 25iQ term of the day is "contribution margin." There are definitions of the term at the link: 

For an example of the term "contribution margin" in actual use see:

25iQuiz: The contribution margin of a Porsche 911 is 47% claims a Bloomberg article.

What is the contribution margin of a Tesla Model S? 

"We’ve been talking about EVs for years, but this year the real production cars showed up,” Max Warburton, an analyst at Sanford C. Bernstein, wrote in a note. “Should we be celebrating these cars, given the poor margins that most will have?” 

"While the carmakers made a big song and dance about their electric vehicle plans in public, in conversations behind the scenes the discussion was more sober. 'No one really has any confidence in market demand, pricing, or the ability to make margins.'" 

You can follow @trengriffin.


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