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by Sohcahtoa82 860 days 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.

3 comments

They 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.

I 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.
If they are selling at a loss, makes me wonder if they're expecting to make up for it in software subscription sales.
Seems 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.
Is there a price breakdown somewhere with a costed bill of materials?