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There's no way in hell they're making money at that price. They're probably not even breaking even. Even the higher trims are going to have extremely thin mar
by Sohcahtoa82 3y ago
There's no way in hell they're making money at that price. They're probably not even breaking even.
Even the higher trims are going to have extremely thin margins, if they're making money at all. Seeing as it's an $8K jump in price from the base model to the second level trim, I imagine dealers are going to make it very difficult to buy a base model.
- floxy 3y agoIs there a price breakdown somewhere with a costed bill of materials?
- somerandomqaguy 3y agoIf they are selling at a loss, makes me wonder if they're expecting to make up for it in software subscription sales.
- AnthonyMouse 3y agoSeems like they're creating a business model for someone to buy their cars, throw the computer it comes with in the trash and replace it with a general purpose one that will run the HVAC without an "insert coin to continue" prompt.
- NotSammyHagar 3y agoThey way they handle that (almost everyone does it this way now) is don't make very many of the low end model, maybe none at the start, then get the cost down and later make them. Suppress demand. GM didn't make enough bolts. Tesla can almost make money selling a model 3 at $39k before any tax discounts, the RWD version with 272 miles. With the theoretical battery price of $100/kwh, each kwh is almost 4 miles of range, need 28+19/4 = need about 11 kwh of battery or $1,100 of cost addition. They don't want to increase the range on their lowest end car because people might buy it instead of the more expensive higher end prices.
- m463 3y agoI think tesla made their stock model 3 wheels sort of rental-car ugly so people would drop a couple k on wheels. or pull off the wheel covers.