That's including R&D, which for a company that is relatively young is to be expected. GM1 is net positive though, and when people say 'X loses money on each item sold' they are typically talking about GM1, not about margins including R&D. This is important because the second depends very much on the number of items sold which one can not know until the run is over or a substantial number of years have passed. It's safe to say the VW beetle had it's R&D paid back fairly early on and that Tesla will take a bit longer (especially for their niche products) because there are simply fewer units to do the pay-back on. Even so, there is a fairly good reason to believe they will be OK on the Model S in the long run, will be about break even on the X and hopefully will end up making money on the Model 3 if they can deliver it in large enough numbers. Also important: the Model 3 R&D was to some extent paid for by the gross margins of the Model S, if not for that they would have had to receive even more outside capital.