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ASP on the Model 3 has been falling quarter over quarter, as have margins. S and X demand and prices have dropped significantly. Model 3 prices dropped yet ag
by new_realist 7y ago
ASP on the Model 3 has been falling quarter over quarter, as have margins. S and X demand and prices have dropped significantly.
Model 3 prices dropped yet again less than a week ago.
- slg 7y agoYour comment directly conflicts with what was stated in this letter: >During the quarter, a majority of orders continued to be for a long-range battery option and the Model 3 average selling price (ASP) was stable at approximately $50,000. At the same time, manufacturing costs continued to decline.
- new_realist 7y agoYes, the ASP was stable... during the quarter. In 2018 the Model 3 ASP was above $57K.
- slg 7y agoIt is a bit misleading to use an ASP number from 2018 as a measure of demand since they weren't delivering the entire range of vehicles at that tine. Tesla started out focusing on the cars with a high price and margin which artificially increased the ASP over where it would naturally settle. Therefore a decrease from that initial high is not any type of indicator of demand.