Uh Oh. Maybe Tesla Needs to Fear the Competition After All

Yesterday, we noted that Tesla ( TSLA ) has a high gross margin on the sales of its cars , despite being a money losing operation--which bodes well for the company once it stops investing so much money in growth. But what if those margins should come under pressure? That's a scenario raised by JPMorgan analyst Ryan Brinkman and team after a trip to Europe, where they noted that European car makers are willing to accept lower profit margins on their electric vehicles. They explain: