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Attempting to price out options for Model 3

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I'd like to see where Tesla said "mass market",

Elon Musk's 'Master Plan' Relies Heavily on the Success of the Model 3 | Re/code
recode.net [cached]
The company has been building up to this point since its inception, according to Tesla spokesperson Alexis Georgeson. Though she declined to comment on how Tesla plans to quantify the success of the Model 3 - is it car sales, net revenue generated or a higher general demand for EVs? - she said that a "mass-market vehicle that an average Joe can afford" is the key to "moving the needle" toward a sustainable future.
 
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Elon Musk's 'Master Plan' Relies Heavily on the Success of the Model 3 | Re/code
recode.net [cached]
The company has been building up to this point since its inception, according to Tesla spokesperson Alexis Georgeson. Though she declined to comment on how Tesla plans to quantify the success of the Model 3 - is it car sales, net revenue generated or a higher general demand for EVs? - she said that a "mass-market vehicle that an average Joe can afford" is the key to "moving the needle" toward a sustainable future.

Read your quote... she's never defining a mass market vehicle as something the average joe can afford. She's saying that's what's needed for a future of sustainable transport.

Elon mentioned during the launch the market they were competing against... It's not a surprise.


Tesla is competing in the sports car / entry luxury car market segments.
Exactly! Conveniently the pricing puts them smack dab in the EV market segment as well :)
 
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Read your quote... she's never defining a mass market vehicle as something the average joe can afford. She's saying that's what's needed for a future of sustainable transport.

Elon mentioned during the launch the market they were competing against... It's not a surprise.



Exactly! Conveniently the pricing puts them smack dab in the EV market segment as well :)

I'd like to see where Tesla said "mass market", I know from the original master plan that the M3 is the "even more affordable car", but I don't recall them saying mass market.

I'm not trying to be pedantic or anything (ok maybe a little). I'm jsut trying to point out to all the people tossing around average car prices and income levels and the "mass market" phrase that the M3 is not going to be a mass market car, I don't think it was ever supposed to be. It is merely supposed to be an even more affordable car than the previous models - which it clearly is.

Now, maybe someone there actually said it and is considering smaller marekt segments in their definition. If you subdivide into segments it will surely be the best in it's segment, but over the enitre new car market - no.

I think @dsvick is onto something here. I can't actually find a place Tesla calls it mass market..

FWIW the media seems to be advertising it as a mass market car...

Why Tesla’s Mass-Market Car Should Scare Mercedes and BMW
Tesla reveals its $35,000 car for the masses
Tesla's 2017 mass-market EV to be called 'Model 3', Roadster to be upgraded to 400 miles range
Tesla targets mass market with new Model 3 - FT.com
Elon Musk tweeted the date he will deliver the first mass-market Tesla
Tesla boosts mass market car production - BBC News

I will revise my previous statement then. I am not disagreeing with Tesla. I disagree with the media.
 
Anywhooo. $80k for the M3 ( in my opinion ) would be insane. Especially for a Tesla that isn't slated as having increased prices for things to support a future model.

Late to this quote but EVERYTHING Tesla sells now or later will support future models. Their won't be giving TM3's away at cost.
 
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Well, we now know the cost of the Supercharging option for the Model 3 ... $2,000 credit :cool:
Tesla to introduce new ‘Supercharger Credit’ system to reduce entry price of Model S & X

Earlier this week, Tesla updated its website with a payment option to buy ‘Supercharger credits’ hidden in the source code of the ‘MyTesla’ page of Model S and X owners, and even Model 3 reservation holders. Tesla quickly reverted the update and refused to comment on the temporary change despite several requests from Electrek. Now sources with knowledge of the new program confirmed new details about its upcoming rollout…

Following the leak, the ‘Supercharger credits’ were associated with the Model 3 because Tesla currently only sells vehicles with “free” lifetime Supercharger access and Tesla already said that it will be an option on the Model 3, but as previously mentioned, the code was also embedded in the Model S and X ‘MyTesla’ page. And now we know why. Sources familiar with the program have told Electrek that Tesla is about to introduce a new Supercharger Credit program to unbundle the cost of Supercharger access from the vehicle and consequently, lower the entry price of the Model S and X while ensuring that the value of the Supercharger network is better represented by the pricing model. The update could coincide with the release of OS 8 or 8.1.

We weren’t able to confirm the amount of the price reduction, but considering Tesla still offers the option to enable Supercharging access for $2,500 on the original Model S 40/60, which were not offered with included access to the network, it wouldn’t be surprising if the discount will be of about the same amount. Update: another source with knowledge of the new program now says that the price reduction will actually amount to $2,000.

Tesla has been working on reducing the price of the Model S and X this year with different options, like with the Model S 60 which is now Tesla’s least expensive option at $66,000. The Supercharger as an option will be Tesla’s next move to reduce the entry price of the vehicle. New owners will be able to buy ‘Supercharger Credits’ by blocks of kWh. The price will depend on local electricity rates in your country. Buying blocks of kWh instead of paying per use, a la gas station, will allow Tesla to simplify its payment structure and reduce the number of credit card transactions.

From the ‘MyTesla’ page on the website, owners will be able to register a credit card number in order to make adding credit as easy as pressing a few buttons on the touchscreen of your Model S, X, and eventual 3. Tesla is also looking to monetize the time spent at the Supercharger by offering other services. We reported last month that Tesla is working to offer car wash service at Superchargers with a pilot project already underway in Fremont.
 
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Late to this quote but EVERYTHING Tesla sells now or later will support future models. Their won't be giving TM3's away at cost.
Do you believe there is any difference in the detailed pricing of an M3 vs a MS?

How much do you believe the MS would have cost if it wasn't funding the M3? Why did Elon Musk continue to mention that those who purchased the MS funded the M3?

Why isn't he saying the same thing concerning the M3? We know other models are coming down the pipe.

For instance....why Isn't Elon thanking the people who are buying the M3 for funding the new Tesla Truck or Tesla Semi or Tesla Bus?
 
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Because nobody has bought a Model III yet? Tesla needs to make money. They aren't a charity, and anybody who knows anything about business knows that selling things at cost is absolutely no way to run a successful business long term. Unless Tesla is happy to fold up shop and shut down after releasing the III, they need to make money on the car. Musk isn't delusional and knows this, hence:

"The simple reality of it is that we will be in a far better position to convince potential investors to bet on us if the headline is not ‘Tesla Loses Money Again,’ but rather ‘Tesla Defies All Expectations and Achieves Profitability. That would be amazing! […]

I thought it was important to write you a note directly to let you know how critical this quarter is. The third quarter will be our last chance to show investors that Tesla can be at least slightly positive cash flow and profitable before the Model 3 reaches full production. […]

We will need to raise additional cash in Q4 to complete the Model 3 vehicle and the Gigafactory. […]

It would be awesome to throw a pie in the face of all naysayers on Wall Street who keep insisting that Tesla will always be a money loser!"

Elon Musk wants to ‘throw a pie in the face of all naysayers on Wall Street’, aims for positive cash flow in Q3
 
August 5th filing with the SEC. Looks like there is cash.

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Tesla Motors, Inc.
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August 5th filing with the SEC. Looks like there is cash.

View attachment 192844

Tesla Motors, Inc.
View attachment 192841

Uhhhhh, yeah. Did you bother to read the line items? The big number there is "Net cash provided by financing activities", which I assume is money raised from investors. It should also tell you something about how quickly Tesla is burning through that money since they're already planning for their next round of financing.
 
Yes, but that is a fair useless definition because it ignores market segments. An average sedan is $20-25k, an entry sports car is $35k and an entry luxury car, $40k. It seems fairly obvious that Tesla is targeting somewhere in the last two market segments with prices in the range of other cars in those segments. "mass market" is done and dead.

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What category do you place the Model 3? Entry Sports car, $35K or Luxury car, $40K? :cool:
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