3 ms·

I kinda get it. Rather than maintaining a supply of multiple parts which complicates your supply chain and install/repair procedures, Tesla is making cars nearl

I kinda get it. Rather than maintaining a supply of multiple parts which complicates your supply chain and install/repair procedures, Tesla is making cars nearly 100% identical physically and differentiating in software.

Workaccount2 3y ago
And getting the suckers who pay up to cover the cost for all vehicles having it.
- gruez 3y ago
  Isn't that fully borne by the manufacturer? Suppose you're the manufacturer of a car that costs $30k to make and sells for $50k. You're posed with the question of whether to add a non-functional part that costs $5k. If you add the part and don't raise the price, then you're eating a $5k loss. If you add the part and raise the price by $5k, you don't eat the loss, but it also means you could have charged $55k for the car. No rational consumer is going to be like "I would have paid $50k for this car, but now that it contains $5k of non-functional component, I'm willing to pay $5k more for it now!".
- kevincox 3y ago
  Those suckers are getting a much better deal than if they had to pay the cost of an alternate production line and logistics flow.
LesZedCB 3y ago
so make them all cost the same then.....?
- yreg 3y ago
  No. I don't need the rear heated seats.
  - deleted 3y ago
    [deleted]
Night_Thastus 3y ago
The supply and install problem clearly isn't that hard, auto makers have been doing it for many decades at this point. Plus, it seems backwards from a business standpoint. You always have the cost of installing the hardware, but now you only get a % of users who agree to pay for the additional cost? The only way to "fix" that is to artificially raise the price of the product so effectively everyone is paying, which means now you're double-dipping from the people who do want it. It's just crap. If I buy a physical device (not renting) then I own it and should be able to use its full capabilities. The only thing that should cost more is anything that has ongoing cost to the manufacturer if I use it.
- bhauer 3y ago
  > The supply and install problem clearly isn't that hard, auto makers have been doing it for many decades at this point. Are you referring to the legacy auto manufacturers that still can't make EVs profitably in 2023? Perhaps Ford with its negative 58.9% EBIT margin on their EV division [1]? Of course you can "solve" a more complex supply-chain and multiple vehicle configurations. It just costs more money. And therefore reduces your profit margin. If you do too much problem-solving of this type, your margin might end up negative. Not every EV manufacturer can subsidize their EV business with a high-margin ICE business. [1] https://media.ford.com/content/fordmedia/fna/us/en/news/2023/07/27/second-quarter-2023-financial-results.html https://media.ford.com/content/fordmedia/fna/us/en/news/2023...
  - Night_Thastus 3y ago
    Installing heated seats or these common add-on features has nothing to do with EVs vs ICEs. It's not specific to either, or harder/easier for either.
- gruez 3y ago
  >The only way to "fix" that is to artificially raise the price of the product so effectively everyone is paying You know what's better than "artificially raising the price of the product" so you can pay for the heated car seats or whatever? Raising the price of the product, and not installing the car seat in the first place and keeping the extra money for yourself. The idea that carmakers can pass the cost of software locked (ie. non-functional) parts to consumers makes zero sense.

Workaccount2 3y ago

And getting the suckers who pay up to cover the cost for all vehicles having it.

gruez 3y ago
Isn't that fully borne by the manufacturer? Suppose you're the manufacturer of a car that costs $30k to make and sells for $50k. You're posed with the question of whether to add a non-functional part that costs $5k. If you add the part and don't raise the price, then you're eating a $5k loss. If you add the part and raise the price by $5k, you don't eat the loss, but it also means you could have charged $55k for the car. No rational consumer is going to be like "I would have paid $50k for this car, but now that it contains $5k of non-functional component, I'm willing to pay $5k more for it now!".
kevincox 3y ago
Those suckers are getting a much better deal than if they had to pay the cost of an alternate production line and logistics flow.

LesZedCB 3y ago

so make them all cost the same then.....?

yreg 3y ago
No. I don't need the rear heated seats.
- deleted 3y ago
  [deleted]

Night_Thastus 3y ago

The supply and install problem clearly isn't that hard, auto makers have been doing it for many decades at this point. Plus, it seems backwards from a business standpoint. You always have the cost of installing the hardware, but now you only get a % of users who agree to pay for the additional cost? The only way to "fix" that is to artificially raise the price of the product so effectively everyone is paying, which means now you're double-dipping from the people who do want it. It's just crap. If I buy a physical device (not renting) then I own it and should be able to use its full capabilities. The only thing that should cost more is anything that has ongoing cost to the manufacturer if I use it.

bhauer 3y ago
> The supply and install problem clearly isn't that hard, auto makers have been doing it for many decades at this point. Are you referring to the legacy auto manufacturers that still can't make EVs profitably in 2023? Perhaps Ford with its negative 58.9% EBIT margin on their EV division [1]? Of course you can "solve" a more complex supply-chain and multiple vehicle configurations. It just costs more money. And therefore reduces your profit margin. If you do too much problem-solving of this type, your margin might end up negative. Not every EV manufacturer can subsidize their EV business with a high-margin ICE business. [1] https://media.ford.com/content/fordmedia/fna/us/en/news/2023/07/27/second-quarter-2023-financial-results.html https://media.ford.com/content/fordmedia/fna/us/en/news/2023...
- Night_Thastus 3y ago
  Installing heated seats or these common add-on features has nothing to do with EVs vs ICEs. It's not specific to either, or harder/easier for either.
gruez 3y ago
>The only way to "fix" that is to artificially raise the price of the product so effectively everyone is paying You know what's better than "artificially raising the price of the product" so you can pay for the heated car seats or whatever? Raising the price of the product, and not installing the car seat in the first place and keeping the extra money for yourself. The idea that carmakers can pass the cost of software locked (ie. non-functional) parts to consumers makes zero sense.