[ww520]

The problem with material cost based approach is that it ignores the value of the brand. Yes, it doesn't cost 2x as much to build a $50K car as a $25K car but the branding of the $50K cars took a lots of money and a long time to build up. People are willing to buy a $50K BMW instead of a $20K car not because of the material cost but because of the intangible brand. A Prius arguably does not have the branding of a $30K car. Toyota still sold tons of them, kudos to them. Similarly Tesla simply doesn't have the branding power of a $50K car now.