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If Tesla are true to their original vision, this is a good move. The low volume, high margin cars that were their original "get the idea on the ground and in a
by tedk-42 3y ago
If Tesla are true to their original vision, this is a good move.
The low volume, high margin cars that were their original "get the idea on the ground and in a few peoples hands but not to the point where we'll trip over ourselves if we need to do a recall" business model got them to the point where they could suffer for a while during the Model 3 production issues but they weathered that storm and are now expanding their gigafactories globally.
The electrified future means replacing a lot of passenger vehicles with electric alternatives and the low volume S and X are simply too expensive for most people and goes against the electrification goal.
- mytailorisrich 3y agoThe problem with "low volume, high margin" for Tesla is that this might have worked when they were the only ones on the market but their cars are not high end enough now that every brand has EVs.
- mensetmanusman 3y agoDepends on how you define high end. Everyone else is struggling on the software side - VW just had a bloodbath in that department.
- simondotau 3y agoReally, the raison d'être of the Model S and Model X was twofold. One: to prove that electric cars are not the poor cousin of the combustion car. They can be just as good and in some ways superior. Two: to make enough cash for Tesla to afford the third step in Tesla's Secret Master Plan (which Musk wrote in 2006). Both these reasons are now defunct. The EV no longer has anything to prove, and Tesla now has a much better source of cash in the 3/Y. I suppose the S/X still have residual relevance as a halo product for the Tesla brand, but they don't need them to be in every market to serve that function.