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“Tesla cannot make $35k M3s at a profit(this is widely accepted, and even Tesla hinted at it), they'll lose money even making $42k cars. They need to make $50k
by madengr 8y ago
“Tesla cannot make $35k M3s at a profit(this is widely accepted, and even Tesla hinted at it), they'll lose money even making $42k cars. They need to make $50k cars to earn a decent profit.”
Which means those extra options are extremely marked up over cost, compared to the base M3.
- zaroth 8y agoSome of the options (e.g. autopilot) are software flags. Doesn’t get higher margin than that. It costs an extra $1,000 if you want to add the software license later, but you can do it.
- mikeash 8y agoThat should be really obvious. They’re selling $8,000 of software options whose unit cost is zero, after all.