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At only $2,000 more I doubt it has a better margin. I think they just want more buyers to be happier with their purchase, while still providing the $35k option
by natch 8y ago
At only $2,000 more I doubt it has a better margin. I think they just want more buyers to be happier with their purchase, while still providing the $35k option they promised for those who prefer to stick strictly to that price regardless of features.
- elihu 8y agoIt wouldn't be surprising if the 240 mile range battery and the 220 mile range battery are actually the same part. (As I understand it, there is a trade-off between battery wear and what voltage you change and discharge to. So, the people with the "low capacity" battery may benefit by having a somewhat longer overall usable battery lifetime.) If that's the case and the "bigger" battery costs nothing to Tesla, the $37k version has a higher margin if the enhanced interior features cost less than ~$2k.
- natch 8y agoPossible... that does make sense. It would definitely be smart to use the same parts if they can do it and give both cars good trade offs for the performance / wear. My hunch is though the other upgrades more than meet the $2k difference even when only considering Tesla’s own cost.
- crowdpleaser 8y agoIt probably does have a larger margin, you'd be shocked at how little it costs automakers to add some features / content. IIRC, an Escalade's interior costs ~$1,000 more to manufacturer than a Suburban's interior. The rule of thumb in trucks is that interior upgrades usually carry a 75%-90% margin for the manufacturer - in some cases, the lower trims actually cost more to build because they're such low volume configurations that the complexity in the supply chain / manufacturing process costs more than the savings of cheaper goods.