Apparently Tesla makes on the order of 10k per car. If they can drop $100 on cost of goods and keep the same sell price, that's a 1% bump in profit/margin. Alon

Apparently Tesla makes on the order of 10k per car. If they can drop $100 on cost of goods and keep the same sell price, that's a 1% bump in profit/margin. Alone, that's not significant, but it's also not trivial. 1% bumps can quickly add up to "real" growth. Another way to look at is, is $100 BOM cost reduction would be like finding ~2 hours of man-hours saving in producing a single vehicle. Which at this point in Tesla's lifecycle (they've been building Model 3s for years now), is probably not an easy or cheap task.