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People keep talking about batteries getting cheaper, how likely is it that this largely reflects changes in the cost to Tesla to produce these vehicles? On the
by gpm 6y ago
People keep talking about batteries getting cheaper, how likely is it that this largely reflects changes in the cost to Tesla to produce these vehicles? On the flip side how likely is it that this is cutting substantially into Tesla's profit margin?
- xoxoy 6y agopricing rarely has anything to do with cost to produce, especially for goods are aren’t perceived as commodities
- mywittyname 6y agoLike how the V8 Mustang is a 10k premium over the turbo four, there's absolutely not a 10k difference in production costs.
- beamatronic 6y agoCheck out the top Porsche 911 vs the bottom. There is a six figure difference!
- ChuckNorris89 6y agoAnd the food you buy in a fancy restaurant doesn't have a 10x difference in production vs the one in the takeaway around the corner but that's not how pricing something in a free market works.
- lazyjones 6y agoTesla have claimed before that it does. > “When we launched Model X 75D, it had a low gross margin. As we’ve achieved efficiencies, we are able to lower the price and pass along more value to our customers,” Tesla said in a statement. (2017) In this case, selling excess inventory/capacity seems a more likely reason, perhaps also the introduction of new Model S/X variants/features.
- clouddrover 6y agoThey're trying to boost sales with price cuts: https://www.reuters.com/article/us-tesla-prices/tesla-cuts-prices-by-as-much-as-6-in-north-america-to-boost-demand-idUSKBN2330DP https://www.reuters.com/article/us-tesla-prices/tesla-cuts-p... All car manufacturers have seen sales decline due to the coronavirus pandemic.
- gpm 6y agoNo doubt, I'm not asking about causality here, just wondering how their project margins are going to be affected.