Referring to your 350 hp example: 1. That motor is a low speed motor, as such it is massive. It weighs 3044 pounds. The Tesla motor runs at nearly 10 times the

Referring to your 350 hp example: 1. That motor is a low speed motor, as such it is massive. It weighs 3044 pounds. The Tesla motor runs at nearly 10 times the speed, and ought to be roughly a factor of 10 lighter. 2. See how the price drops by almost 10% when you buy more than 5 of these motors? Now imagine you are buying 20,000+... 3. You can bet the manufacturer of the motor (Baldor) did not get $25k for it. I imagine the markup for the reseller is of the order of 30-50%, on top of other costs such as transport. These do not apply to Tesla. I am pretty sure even $6000/unit is an over-estimate. I have some information from an occasionally reliable source that the entire car costs around $20,000 to make. This is the "incremental cost", after tooling, R&D etc has been paid for. This is apparently about the same as a top level mass produced luxury Benz - for the Benz, the much higher inherent production cost is offset by the scale and efficiency of their production line.