3 ms·
Still, the cost per unit will decrease as the number of units increases, which was the point.
by hackerlight 3y ago
Still, the cost per unit will decrease as the number of units increases, which was the point.
- andrewmcwatters 3y agoYou can say the same thing about any product mass produced.
- hackerlight 3y agoNot everything has the same unit economics. The self-driving software is one part of the costs that is heavy on the fixed costs side and will therefore scale better than other costs. If you produce a million cars vs one car, the cost to make that software isn't a million times more expensive.
- refulgentis 3y agoThere isn't really a reason to expect a significant effect, in practice, Tesla COGS/unit plateaued a few 100K ago. It's a bit too abstract and high-level. Batteries specifically does make sense, ex. Model X has 100 kWh battery. if I price out 100 kWh at $200 right now (high) and its $100 a decade from now, about $20K. "Software" is hand-waving. Electric motors being easier does make sense.