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by mdorazio 2141 days ago
I work in the automotive industry. Short answer: yes, it's still cheaper. Three things to consider:

1) Tesla's panel is not expensive. For a long time (maybe still), it wasn't automotive grade (rated for high temperature and shock/crash-proof operation) - they just used a standard consumer panel - bulk cost likely well under $300. For comparison, that's about the same cost as a traditional automotive head unit alone. Other items not included in a model 3 are also not cheap - for example, a standard wiper switch assembly is about $25 since it's fairly complicated and has pretty high QA standards. A standard instrument cluster is going to be close to $100.

2) You have to consider manufacturing cost, not just parts cost. Wiring is a huge pain in the ass on an assembly line since it's very difficult to automate and it's easy to mess up, so the more things you have to wire to different places in the cabin, the more labor time you have to pay for. Running everything via a single screen means you only have to wire components to the CAN bus and can drop a lot of the usual driver controls wiring harness pain.

3) The HN crowd is not indicative of the wider market. I learned this the hard way when working on an LCD-hard button hybrid interface for head unit controls. A lot of customers (maybe even most) absolutely love touch screens and think the Tesla central panel is fantastic. For them, an all-touch central interface is a marketing win rather than a drawback that needs to be explained away as a cost cutting measure. Model 3 is not targeted at older, high-end luxury vehicle buyers, it's targeted at environmentally conscious tech enthusiasts with a decent amount of cash and a bit of a craving for status signalling. If you draw a venn diagram, there's a pretty big overlap between this segment and the "wants touch controls" segment.

1 comments

But by your own logic all they saved was, at most, $25 on a wiper switch, but they didn't really because the Tesla 3 already has a stalk on both sides, with all the associated labor. And, again according to your own evidence, they saved this tiny amount of money by doubling down on what is undoubtedly the most expensive component of the interior: the head unit and its display.
That's not how I read it. GP's #1 says that you're already saving $25 just looking at the cost of parts because the panel is about the same price as a traditional head unit and then there's the wiper switch. (Maybe you're right though, that they're not really saving on the switch.)

But then, #2, you factor in the cost savings associated with simplified manufacturing (which, as GP explains, goes well beyond just the wiper switch). This is what makes the panel approach much cheaper.

I'm just not seeing it. Flat panel display costs scales according to area. The Tesla 3 has a huge display. It surely costs a lot. And, Tesla isn't the kind of company that is either interested in or able to optimize for cost. They sell expensive cars and they lose a lot of money on them. They're also notorious for having ridiculously expensive assemblies, like the $2000 headlights of the Model S.

To me, the much more plausible aspect of the explanation is they think it looks cool/futuristic and their buyers are buying for reasons other than usability.

OK. But now it sounds like you're just disagreeing about the cost of the panel. That's fine. I certainly don't know how much the panel costs. But it's completely different from the previous point, right?

I'd also point out that Tesla is hardly the only automaker that is increasing its use of a single touchscreen for these functions. And, before that, manufacturers were already combining features into all-in-one units that were very similar in principle but controlled in different ways--such as with weird knobs, and other things. I expect it's a combination of consumer "wow factor"--which will probably wear off very soon--and streamlined manufacturing that drives this. But I'm no expert.

They saved $25 in parts on the wiper controls. They saved more on labor. They also saved parts and labor on controls for AC/heat/fan controls, mirrors, driving mode selection (comfort/sport), traction control, regenerative braking, heated seats, and probably a bunch of other things I'm missing.

For the wipers specifically, putting it in the screen is questionable for safety reasons. The rest of it definitely saves them money.

No, it's $25 parts savings for the wiper switch, some additional savings for the simplified steering column, an additional $100 parts savings for not having an instrument cluster (speedometer, tachometer, fuel gauge, etc.), additional savings for not having climate control hard buttons, and then at least $50 in labor and wiring savings due to the simplified installation.

And to your other comment, please look up bulk touchscreen panel prices on Alibaba. They are far cheaper than you seem to think, especially since the majority of the computing power is in a separate module. The model 3 uses the LG LA154WU1-SL01 panel. It is not expensive (under $300 in bulk) and continues to get cheaper.