I think that is correct.
To me, Tesla AP has been under priced compared to the pitifully poor competition.
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To me, Tesla AP has been under priced compared to the pitifully poor competition.
$500 seems like a pretty small bump to cover at least twice the sensor suite. Maybe it's a starter so that when they bump it $1000 after the announcement, it isn't too shocking?
Canuck
Well-Known Member
I thought the AP hardware was relatively cheap and the significant cost with AP is software development.
Where do you get twice the sensor suite from?
My understanding is the only thing being switched out in the near future is to a tri-camera, and that's it. To me this sounds perfectly in line with a $500 price bump.
Or maybe they want $500 just for the wiring harness since we know that's supposed to already be included on cars made right now.
Tesla Autopilot 2.0: retrofit to next gen sensors likely to be available for some owners
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Apparently from thin air. I thought I'd read something about multiple radar sensors being potentially added as well (including rear-facing). Sounds like I was mistaken, so I'll retract my statement before I'm cooked on the heretic fire.
Canuck
Well-Known Member
Ha! I predicted AP2.0 hardware being released before the end of 2015. So now I've doubled down with a price increase that may have nothing to do with it. It sure would be nice if Musk would just answer the question but I think I read somewhere that he refused to even answer at the Q&A today when asked about it. Does anyone have more information on that or I did I pull that from thin air?
For those that think $500 is to cover hardware what happens to someone in order week now and paid $2500? No dice?
Tesla sales is saying it's just a regular increase. And yes it's still underpriced.
This whole release ESP being only in P is to squeeze some margin to help launch the 3. Bit socialist if you ask me.
Tesla sales is saying it's just a regular increase. And yes it's still underpriced.
This whole release ESP being only in P is to squeeze some margin to help launch the 3. Bit socialist if you ask me.
What's more capitalist than maximizing your profits as the market bears in order to invest in a future, scaled up venture?
I don't think it's under priced because the car is already super expensive compared to its counterparts. People that don't pay to unlock Autopilot are essentially subsidizing the Autopilot hardware. Selling a car for $50k and then adding $20k in options is the same as selling the car for $65k with $5k in options.
EVie'sDad
Member
I suspect it may have something to do with the Gen2 AP CPU, Sensors & Camera upgrades coming in the next six months.
Canuck
Well-Known Member
There's counterparts who offer long range EV's and corresponding Supercharger network?
If the counterparts are ICE vehicles and gas stations, I don't see them as counterparts, and I don't see Tesla as "super expensive" in comparison. Expensive, yes, super, no.
krazineurons
krazineurons
No, you had read it right. The electrek article talked about adding more radars on each corners atleast. Not sure for camera on rear.
SSD420
Member
I was told that no one can waive the destination fees. Even if you pickup directly where it was built, you pay it. It's just a mandatory cash grab fee.
The HW is in the car, if you pay the price or not, it's not related to new HW, it's that simple..
they changed it to get more money, they declared it. Tesla quietly increases price of Autopilot by 20%, says it’s to better reflect its value
they changed it to get more money, they declared it. Tesla quietly increases price of Autopilot by 20%, says it’s to better reflect its value
Haxster
Member
Redistribution of wealth?
Maybe it’s all part of Elon’s redistribution of wealth model. As he has stated numerous times, buyers of current (and past) Tesla’s are helping to fund the development of the lower cost Model 3 et al. In other words, affluent buyers are transferring some of their wealth to benefit the middle class.
As Tesla is finding out, there’s surprisingly little price elasticity of demand (PED) for their options (e.g. “I want it. It’s price increase is less than 1% of the cost of the car. Maybe it's been improved. I’ll order it”).
It's a bit of... ummm... bovine digestion byproduct. While I think it's great that Tesla is playing their green & social warrior cards, sometimes it gets to be a bit thick. They're bumping the price because they can and because they need to increase margins. And fair enough... they need the revenue for all sorts of reasons.
But trying to make people feel like eco-warriors and champions of our shared global purpose as they drop $200K on a rocket is going a bit too far. Nobody, and I mean nobody is going to look at somebody driving a P100D and say "Wow! What a wonderful and selfless person... giving up their hard earned cash to finance my child's future!".
Don't get me wrong. Better a Tesla than a Ferrari in that respect... but c'mon.
Wether it's electric or ICE a thing that transports you from one place to the next in a similar way is a counterpart. It's not like you are saving outrageous amounts of money going electric. That money is just being spent in other ways, mostly by using up your time at superchargers when your going long distances.
I am around luxury vehicles a lot and the most comparable cars size wise is the Cadillsc CTS $65k, Mercedes E-class $65k and BMW 5 series $60k.
It may also have something to do with more and more 60s being sold with AP being the one feature the majority of people ordering the 60 are most willing to pay for/selecting. That would help Tesla balance some of the margins.
//TB
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