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It will come as soon as the company exhausts demand for the higher-ASP variants. In what world does it make business sense for a production-constrained company
by danhak 8y ago
It will come as soon as the company exhausts demand for the higher-ASP variants. In what world does it make business sense for a production-constrained company to prioritize its least expensive products?
- kasey_junk 8y agoWhen the least expensive products have higher margins than the most expensive ones?
- froindt 8y agoI haven't researched specifics on Tesla, but typically bigger => larger margins in the automotive world. Manufacturers weren't thrilled when the Obama administration pushed for higher fuel economy after the bailouts. The margins on the small cars were much lower than on trucks and SUV's. For example, Ford's F-150 line is worth an incredible amount of money. "Morgan Stanley analyst Adam Jonas has estimated that the F-Series, which includes F-150 and Super Duty trucks and remains the best-selling lineup in America, is responsible for 90% of the automaker’s global profits." https://www.foxbusiness.com/markets/why-the-ford-f-150-is-a-profit-machine https://www.foxbusiness.com/markets/why-the-ford-f-150-is-a-...
- snovv_crash 8y agoAnd even then only margins in $, not as a %. With a price difference of $49k vs $35k I don't see that as being likely, unless it is something in the upgrade package that is an assembly line bottleneck.