At the same time, "Tesla's unadjusted gross margin of 25 percent last year is impressive by any standard," he said.
Indeed, Tesla is burning massive amounts of cash now. In the short term, Tesla is spending a lot on the Model 3.
Galliers estimated that without the Model 3-related spending, Tesla's gross margin could grow to around 30 percent, putting it roughly on par with Porsche.
After the Model 3 buildout, Galliers expects Tesla can sustain gross margins of 25 percent, which would place it above BMW and Mercedes and just below Porsche.
He added that an EBIT margin range of roughly 12 percent to 15 percent is achievable in the long term, once growth normalizes and costs begin to flatten. "In other words," he said, "Tesla has the potential to achieve margins that are double those of US peers today."
And while Galliers acknowledged that Tesla's ambitious production schedule will be a stretch for the company, it is not unprecedented. For example, Chinese automakers Great Wall, BYD, Jianghuai, and Chery all ramped up production at rates similar to, or not far behind Tesla's stated goals.