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Tesla does not need to sell premium configs to "stay afloat". They are selling premium configs so that their margins are not so brutally low, so that they don'
by rich-and-poor 8y ago
Tesla does not need to sell premium configs to "stay afloat". They are selling premium configs so that their margins are not so brutally low, so that they don't get roasted for that as well. Honestly, Tesla can not win: Sell low margin base models, have a terrible quarter and get roasted. Sell high margin, high trim models and get roasted for high priced cars. They can not win.
- RyanShook 8y agoI agreee that they are bound to upset either investors or consumers but Elon often promises the moon for both and I think that is what gets him in trouble most often. Would there be record reservations if the Model 3 was advertised as 50k base?
- rich-and-poor 8y agoNo but then they would be lying because base is 35k.
- jpatokal 8y agoWhen your capacity is limited, selling higher-end models with higher margin is the completely obvious choice to maximize revenue and profit. "Have a terrible quarter" is far worse than "get roasted" by random people on HN.
- gowld 8y agoThey could win if they could ramp up production to hit their touted targets, and sell both models.
- r00fus 8y agoThis will happen in Q3 - they want to get the maximum out of the "last quarter" of federal tax credits.