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This is not true. That rule of thumb only exists for people who currently have those cars and wish to replace them with something comparable at that price point. Or in this case you're assuming they'll want to replace them with a better (performance?) car at the same price point.

There is a whole other segment (a rather large segment) of the population who have never owned any of those cars, but will pay the extra money to get into a Model 3. I'm just one example of that, but I have a lot of friends who also resemble that and they have friends that resemble that and so on.

The world doesn't revolve around those cars. Let's not forget that. And let's not forget the stats that have represented people who purchased up to get a Model S or X that came from modest makes like Toyota
I don't know when the mass market sponge will overtake the effects of those of us who want electric, but I believe there are points at which desirability of the vehicle overall actually have a huge impact on sales. I think @DaveT's requirement for a test drive as an investor is spot on.

Most of the people who asked about my Tesla Model S (since sold due to price) had questions about how it was as a car, not how it was as an electric. Sure, many of those questions were cloaked in questions about the electric, like, what the heck is the deal with how do you charge it, how far it goes, etc.. They all wanted to know how far it goes. None of them were interested in the feel of the drive when they were asking me. Of course, once they get in it, they will feel the electric is superior in many ways, but that's just like the door on a Mercedes E class has a superior number of appropriately spaced hold points when you open the door, so you can still fit going in and out in tight parking spots and have the door hold itself -- something I always cursed the Tesla Model S for not having. The whole car will be judged worthy of purchase or not, not just parts of it (the electric motor part, the battery part, the door part, etc.).
 
I live in a somewhat upper middle class neighborhood and my Model S is the only electric for blocks (though someone had a BMW i3 for a while, I think he worked for BMW because he seems to have a different BMW every month or two). There is a wealthier part of town on the other side of the hill and we've seen Teslas going in and out of that neighborhood. They are common enough now I usually see at least one when I'm out and about, but I'm still the only one in my immediate neighborhood.

When I got my car, there was only two neighbors who knew about them. One is an engineer who has been following Tesla since the days of the Roadster.
Ditto ditto.

It's amazing to techies into Tesla who frequent Palo Alto how many neighborhoods of $900,000 - $1,200,000 homes there are in California that are "too poor" to have more than a very small number (0, 1, 2) of Tesla's in them. I live in just such a neighborhood; less than a year ago, it had zero (0); then, it had one, then two, and now one, Teslas in it. It is a very price conscious fact that Teslas are not in many places.

I'd have to go around to see if there are any Leafs, Bolts, or other electrics.

The price range of the car is a big deal.

And, given that the price range is a big deal, the quality of the product also matters, too.
 
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While the driving characteristics of the Model 3 are very important in the purchase decision, the appearance of the car is key in getting someone interested in taking a look. A millennial friend who is working at the GigaFactory this summer sent me a text this week after getting to walk around a release candidate M3:
Sooooooo much prettier in person! It is a beautiful car. Some of the pics make it look kind of goofy.
It is going to be a barn burner. I just know it.
 
Dave, I saw you on KmanAuto's Youtube live stream on Friday at the Model 3 unveiling. So... did you get any answers on how good is the Model 3?
Just listened to the Ride the Lightening Podcast snd Ryan and his guest were very enthusiastic about the fit and finish and all of the details. That combined with the MT Review road test convinces me (I was confident already) that the M3 is a winner.

When the people understand the quality of the car the sales will increase substantially. IMO when the market realizes the popularity and the profit margins and gains confidence of Tesla hitting their production goals the SP is going up. I believe that will,happen faster than it did with the MS.

And this is within any substantial help from FSD or alien dreadnaught. The impact of alien dreadnaught on the SP isn't going to make a big impact on the SP until the MY. When those two things happen the SP will be in insane mode.
 
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@jesselivenomore : The last post of yours that I read said your reentry point was $345. Any thoughts on what this reveal does for the SP and what you expect out of the ER and the effect THAT will have on the SP?

Thanks

My thoughts on those things are pretty subjective. I form a long term directional bias based on where I think the company is going, which hasn't changed after the reveal. But how to execute on this directional bias I try to use technicals to determine entry, exit, leverage points etc. Based on the technicals I see now, until we get a clear break above 345 area, I am keeping a relatively light exposure. Also I try not to anticipate if we will break it, but rather react once we do, even if that means ignoring my own short term subjectivity on things like the reveal and ER.

If we reject the 345s, there will be lower entry points as share price sets up.(guessing 280s)
 
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On Friday, I had the privilege of attending the Model 3 handoff event where Tesla delivered its first 30 Model 3 cars. It was a special moment for Tesla, for Elon, and for all Tesla employees, owners and fans. You could feel the excitement in the air from the over 1000 employees who had gathered around to be part of the night's event.

However, you could sense Elon downplaying the Model 3 somewhat. He barely talked about the Model 3 features, besides range and acceleration. And he emphasized a slow and painful production ramp. Most of this was for necessity, as I speculate Elon doesn't want to dampen Model S/X sales especially during the next several months where they will only be producing limited numbers of Model 3.

While Elon couldn't (or wouldn't) divulge in all the Model 3 details I was hoping for, I was left trying to put together the pieces myself by talking with as many people as possible who had test driven the car. The short version: the car is amazing and drives like a smaller Model S.

I had ridden in a prototype Model 3 over a year ago during the initial reveal and was able to ride in a production one at this weekend's event. The prototype from last year had a sparse interior and it felt unfinished. But the production Model 3 I rode in had a spectacular interior; it felt luxurious with just the right amount of minimalism. I actually prefer the Model 3 interior over the Model S/X interior. They did a great job with re-inventing the interior of a car and in many ways it felt like a next-generation Tesla. I like how the dash sits a bit lower than the Model 3. There are no traditional vents, and barely any buttons (I don't recall seeing one). Everything is so clean inside. It feels great to be inside, and it feels like the future.

The front seats had a lot of leg room, as did the rear seats. I met someone 6' 2" who sat in the rear and said he had plenty of head and leg room. My ride in the prototype last year was in the rear seats, but this time around I got to sit in the front passenger seat. And I was surprised that it felt almost as roomy as a Model S.

It's difficult to tell a lot from a short ride, but it felt like a smaller Model S. I could tell that the Model 3 could turn more nimbly and was easier to steer in that sense. It seemed like I was able to feel the road (bumps and everything ) a bit more with the Model 3 compared to a Model S. The engineer that hosted us also shared the same sentiment saying that the Model S was a bit more smoother than the Model 3. But he also said he absolutely had fallen in love with the Model 3.

I think the slightly rougher feel (compared to a Model S) was partially due to the production cars having 19" wheels at the event. They seem to pick up more of the road than the 18" wheels Tesla is also offering. I also think the lack of air suspension probably adds a bit less dampening as well. But overall, I think people will be extremely happy with how the car rides and feels. If someone is doing a lot of freeway driving, I think the Model S would definitely be a smoother and more comfortable car. But for someone doing more local/city driving, the Model 3 will out-handle the Model S and would be more fun to drive.

The user interface is completely wrapped up in one 15" screen, and I think Tesla did a good-enough job in its interface design. However, the screen did feel more complicated and less intuitive to use compared to the Model S. I think it's a combination that the Model S has a simpler navigation shortcut bar than the Model 3, and in the Model 3 Tesla is combining more features that rely on that one screen to control (ie., you even initiate control your side mirrors from the screen). In terms of user interface, I strongly prefer the Model S but I think most people will be happy with what the Model 3 offers. I wasn't able to find the Calendar app on the Model 3 screen, even after playing around with it for a few minutes. I do hope they add that feature as its very handy.

A few Tesla employees confirmed to me that the main key will be your smartphone. It appears that they will be relying on a connection between your smartphone and your car in order to unlock the doors. Also, there's a credit card key that will act as a backup. The credit card is amazingly thin. It felt even thinner than a typical credit card. But you will need to physically swipe the card against a B pillar (the pillar between the front and rear seats) to gain access to the car.

In the rear of the car, there is an armrest that folds down from the center of the seats and on the armrest there are cupholders. There are also pockets on the doors.

In order to open a door from inside, you need to push on a button (there is no handle from inside), and it opens the door.

To enter the car from the outside, you need to push on the top corner of the handle and then pull out the other side to open the door. Most of the employees I talked with said it takes just a few tries before you get used to it.

I wasn't able to see the frunk (front trunk), but a Tesla employee told me that it fits just a carryon luggage and nothing else. So it's very small.

I was able to see the rear trunk, and it looked quite large. I think most people will be pleasantly surprised as it's quite deep.

Overall, I think the Model 3 will be a big hit. Tesla really nailed the exterior and interior design. It's simply gorgeous. And from what I can tell, the driving and handling feels like a smaller Model S, which means it's going to simply outperform all its competitors.

My goal over the next couple months is to try to test drive the Model 3 for several hours. I know it's going to be a challenge since Tesla likely won't have Model 3 test drive vehicles for quite a while. So, I'll need to find an employee who took early delivery and is willing to let me drive their car for a few/several hours. If you know a Tesla employee with an early Model 3 (or you know someone who knows someone), please let me know. I'd love to get in touch with them. And of course, if I'm able to get an early test drive I will be sharing my experience with all of you.
 
I would be extremely negative on a car which you could only open with a smartphone -- I don't even own a smartphone -- but the credit card key is genius. Much easier than futzing about with a fob. We already have lots of cards in wallets and card holders of various sorts. It's like a fob but it weighs less, is more compact, and doesn't have an internal battery.
 
I would be extremely negative on a car which you could only open with a smartphone -- I don't even own a smartphone -- but the credit card key is genius. Much easier than futzing about with a fob. We already have lots of cards in wallets and card holders of various sorts. It's like a fob but it weighs less, is more compact, and doesn't have an internal battery.

Wonder if it's a move to the future with Tesla Network. Like a engagement and loyalty card, but serves many TN-based purposes.
 
Honestly, I'm just too perfectionist to tolerate the unreliable behavior of "smartphones", and too paranoid to trust anything important to them, and I don't really like people being able to reach me when they want to rather than when *I* want them to. Given all of that, I'm not about to pay the very high prices.

But yes, one of the reasons I can afford to not have a smartphone is that *I don't have a boss*. Some of the people I know who are employees are actually required to have one.
 
Honestly, I'm just too perfectionist to tolerate the unreliable behavior of "smartphones", and too paranoid to trust anything important to them, and I don't really like people being able to reach me when they want to rather than when *I* want them to. Given all of that, I'm not about to pay the very high prices.

But yes, one of the reasons I can afford to not have a smartphone is that *I don't have a boss*. Some of the people I know who are employees are actually required to have one.

I never owned a smartphone: you sometimes lose something, but gain a lot of free time to think, read, and sometime just being bored. I am on my laptop most part of my time though, so I can read emails kinda 24/7. I just like not to have internet on me when I'm not on my computer with a proper screen and a keyboard.
 
I resisted a smartphone for years but got a Samsung S4 about 3 years ago and have found it to be a valuable tool. Bubble level, thread pitch guide, small ruler, flashlight, conversion tools, wifi analyzer, GPS, calculator, weather radar to avoid storms, frequency tester, etc, plus of course access to all the world's knowledge about almost anything in an instant. It definitely has made me more productive. I don't use it for social media. Also useful in a power outage to provide access to the internet to see how long the outage might be and what areas are affected. It's really the first step towards the neural lace Elon talks about, human 2.0.
 
Thanks for the detailed, informative writeup! The Model 3 appears to be a great car overall.

In order to open a door from inside, you need to push on a button (there is no handle from inside), and it opens the door.
Do you know if there's a mechanical linkage from that button to the door latch? What if there's an electrical glitch or the 12V battery dies? How would one exit the car?
 
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