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Reservations are not necessarily for a $50k car. $35k plus a $7k tax credit is quite different from $50k and no tax credit.

by kgwgk 8y ago

toomuchtodo 8y ago
That wasn't in the comment I replied to. OP asked about # or cars, not options/trim and tax incentives available. I assume Tesla will maximize for tax credits (soak up those federal dollars), and then reduce the price if necessary for their vehicles if demand is decreased by the credit phaseout. International orders (which are still in queue) aren't impacted by the Tesla vehicle credit phaseout. There's a reason they're going to push every car they can in the US first before that credit is gone.
- kgwgk 8y ago
  That’s true, but it’s not yet clear when they will be able to sell lower-priced models without increasing the cash-bleed.
  - toomuchtodo 8y ago
    https://www.youtube.com/watch?v=pAS-yjWj9DY https://www.youtube.com/watch?v=pAS-yjWj9DY Munro Teardown Shows Tesla Model 3 Solidly Profitable [video] (youtube.com) https://news.ycombinator.com/item?id=17542864 https://news.ycombinator.com/item?id=17542864 (HN Thread) Animats mentions labor costs top of thread, which have been falling in Fremont now that they've hitting their stride (rumor I've heard, not material info, can't provide a citation). If you're interested, highly recommend being on the investor call next month for Q3 rundown.
    - gamblor956 8y ago
      That video, and articles on the teardown, confirm that the luxury-level-priced Model 3s are solidly profitable...which they should be, since no major automaker sells luxury vehicles at a loss per unit. The question is whether Tesla can sell Model 3s at the originally claimed $35k, which is highly questionable. Indeed, Munro himself sells, "I think $36,000 Model 3s will be rare as hen's teeth. I don't see how they could make money at $36,000."
      - ericb 8y ago
        The answer to what Munro doesn't see is that the Tesla battery makes up $6,500 of the cost. With continually falling battery costs, the answer is that the "how" will be obvious in a year or so. https://cleantechnica.com/2017/12/11/batteries-keep-getting-cheaper/ https://cleantechnica.com/2017/12/11/batteries-keep-getting-...

Reservations are not necessarily for a $50k car. $35k plus a $7k tax credit is quite different from $50k and no tax credit.

by kgwgk 8y ago

Reservations are not necessarily for a $50k car. $35k plus a $7k tax credit is quite different from $50k and no tax credit.

toomuchtodo 8y ago

That wasn't in the comment I replied to. OP asked about # or cars, not options/trim and tax incentives available. I assume Tesla will maximize for tax credits (soak up those federal dollars), and then reduce the price if necessary for their vehicles if demand is decreased by the credit phaseout. International orders (which are still in queue) aren't impacted by the Tesla vehicle credit phaseout. There's a reason they're going to push every car they can in the US first before that credit is gone.

kgwgk 8y ago
That’s true, but it’s not yet clear when they will be able to sell lower-priced models without increasing the cash-bleed.
- toomuchtodo 8y ago
  https://www.youtube.com/watch?v=pAS-yjWj9DY https://www.youtube.com/watch?v=pAS-yjWj9DY Munro Teardown Shows Tesla Model 3 Solidly Profitable [video] (youtube.com) https://news.ycombinator.com/item?id=17542864 https://news.ycombinator.com/item?id=17542864 (HN Thread) Animats mentions labor costs top of thread, which have been falling in Fremont now that they've hitting their stride (rumor I've heard, not material info, can't provide a citation). If you're interested, highly recommend being on the investor call next month for Q3 rundown.
  - gamblor956 8y ago
    That video, and articles on the teardown, confirm that the luxury-level-priced Model 3s are solidly profitable...which they should be, since no major automaker sells luxury vehicles at a loss per unit. The question is whether Tesla can sell Model 3s at the originally claimed $35k, which is highly questionable. Indeed, Munro himself sells, "I think $36,000 Model 3s will be rare as hen's teeth. I don't see how they could make money at $36,000."
    - ericb 8y ago
      The answer to what Munro doesn't see is that the Tesla battery makes up $6,500 of the cost. With continually falling battery costs, the answer is that the "how" will be obvious in a year or so. https://cleantechnica.com/2017/12/11/batteries-keep-getting-cheaper/ https://cleantechnica.com/2017/12/11/batteries-keep-getting-...