"Confirmed" Model ≡ Pricing

[sms_327]

Stopped into a gallery today after lunchtime with a friend. The friend I was with had never sat inside a Model S before and I was running down the specs while the product specialist was engaging another customer. I overheard him say that their floor model Model X would be arriving sometime in January or February while there was still no word on testers. I then mentioned to my friend about my intent to place a deposit on the Model ≡ after its March unveiling and that the targeted price was 35K but that I was betting it would be more like 40. The specialist without hesitation remarked (paraphrasing here) the base model would be 35 and the AWD (yes, that's All-Wheel Drive) would be 40. Not only was I somewhat smugly smiling that I got the figures right on the money, but also that I got him to divulge that information without even addressing him. Hopefully after this upcoming winter I'll know which configuration to choose.

 

[JohnSnowNW]

Considering the efficiency "trick" with the dual motor design, I would actually be surprised if the Model ≡ has a single motor option.

 

[ecarfan]

"Confirmed" Model ≡ Pricing

I am certain the base Model 3 will be single motor. The additional cost of a second motor, gearbox, and inverter is significant when you are trying to build a long range EV with a $35K base price.

 

[JohnSnowNW]

I don't think it's that simple. If your efficiency is higher with the dual motors, you need a smaller battery pack. That said, I acknowledge that I do not know what the "significant" cost of the 2nd motor and accompanying parts cost Tesla.

Just seems to me Tesla is moving away from a single motor design...but we are talking much more expensive vehicles.

 

[Grendal]

The base Model 3 will only have one motor. It's not a dramatic enough percentage improvement that a few more batteries wouldn't overcome. Batteries coming from the gigafactory will cost less than the additional motor and inverter will. It makes perfect financial sense that there will be an additional charge for the AWD feature. The question for me will be whether AWD will be available in the initial production run or come along later. My instincts say they will offer it immediately. Too bad we won't get the Model 3 design studio for at least another year after reservations are taken. Then we would know.

 

[apacheguy]

Does the base price of 35 K include the 7,500 tax credit?

 

[Ugliest1]

Does the base price of 35 K include the 7,500 tax credit?

Elon has always said "before any federal/state incentives"

 

[Lonnie123]

It's always been a 35k base, and going AWD is currently $5k on every model they offer so it makes sense that it would be $40k. Obviously this employees numbers make complete sense, but just as a general rule I would be very wary of taking their word as gospel, especially on a car that hasn't even been revealed yet. On this site they have been wrong or contradicted each other and/or corporate many, many times.

 

[Chris TX]

AWD gives better efficiency because of the gearing on the Model S. If the gearing is changed on the Model 3 2wd for efficiency, I could see it being the same range for 2 and 4 wheel drive.

 

[dmd2005]

I think it has been mentioned before that the federal incentive is for 200000 vehicles per manufacturer. If the first Model 3 isn't delivered till 2017 or 2018 there won't be any $7500 incentive left for Tesla with Model S and X closing in on 200000 vehicles by 2018 unless you're one of the early Sig 3 holders.

 

[Model 3]

I don't think it's that simple. If your efficiency is higher with the dual motors, you need a smaller battery pack. That said, I acknowledge that I do not know what the "significant" cost of the 2nd motor and accompanying parts cost Tesla.

Just seems to me Tesla is moving away from a single motor design...but we are talking much more expensive vehicles.

Elon has confirmed that the base Model 3 will not get AWD, but it will be an option. Until that I was thinking the same paths as you.

 

[Panu]

Base model will probably be $35999 before fees and taxes and Tesla might be selling it with negative margin. But as most Model 3s will be sold for more than 40K they will be making profit over all.

 

[Mookuh]

AWD gives better efficiency because of the gearing on the Model S. If the gearing is changed on the Model 3 2wd for efficiency, I could see it being the same range for 2 and 4 wheel drive.

AWD on the Model S improves efficiency because the two motors are geared for maximum efficiency at different speeds. You cannot achieve the same efficiency improvement with a single motor, unless you add a gear box (which comes with it's own losses).
Electric motors have a very flat efficiency curve, meaning the difference in efficiency at different RPMs is little. But it *is* there, and the 4WD Model S takes advantage of that.

 

[CmdrThor]

Base model will probably be $35999 before fees and taxes and Tesla might be selling it with negative margin. But as most Model 3s will be sold for more than 40K they will be making profit over all.

There is zero chance that Tesla will sell any Model 3s below their cost.

Also to the OP, the sales reps for the most part are working on the same information you or I have. Especially for something as far out as Model 3. The rep was simply repeating what Elon has said many times.

 

[Panu]

AWD on the Model S improves efficiency because the two motors are geared for maximum efficiency at different speeds. You cannot achieve the same efficiency improvement with a single motor, unless you add a gear box (which comes with it's own losses).
Electric motors have a very flat efficiency curve, meaning the difference in efficiency at different RPMs is little. But it *is* there, and the 4WD Model S takes advantage of that.

It would be nice to see that also in real life tests.

- - - Updated - - -

There is zero chance that Tesla will sell any Model 3s below their cost.

It might end up so that either they sell it below their cost (at the beginning at least) or they break their promise. Which one is worse for the business?

 

[Model 3]

The rep was simply repeating what Elon has said many times.

Except for the AWD pricing. Her the rep was simply guessing that the AWD option on the Model 3 would be the same as on the Model S - which may or may not be true...

 

[WarpedOne]

There is zero chance that Tesla will sell any Model 3s below their cost.

What is 'their cost'?
Raw materials? Labor included? Design expenses included on 100k vehicles? RD? PR?
To many factors to make any sensible statement. Remember, some are still claiming tesla is still operating at loss meaning they are selling the cars below "their cost". It is ridiculous but technically true.

 

[rosinchard]

Elon has confirmed that the base Model 3 will not get AWD, but it will be an option. Until that I was thinking the same paths as you.

yep

Elon Musk: Base Model 3 will not come with dual motor all wheel drive | Electrek

 

[Kevin Harney]

I think it has been mentioned before that the federal incentive is for 200000 vehicles per manufacturer. If the first Model 3 isn't delivered till 2017 or 2018 there won't be any $7500 incentive left for Tesla with Model S and X closing in on 200000 vehicles by 2018 unless you're one of the early Sig 3 holders.

True but that credit is phased out over several quarters AFTER the 200,000 is reached. OTOH most people buying a Model 3 won't have enough taxes to reach the $7500 anyway. It is a credit afterall.

 

[yobigd20]

The specialist without hesitation remarked (paraphrasing here) the base model would be 35 and the AWD (yes, that's All-Wheel Drive) would be 40. Not only was I somewhat smugly smiling that I got the figures right on the money, but also that I got him to divulge that information without even addressing him.

that's because this is already well known public information. Elon has said on numerous occasions that the base price for the Model 3 would be $35k BEFORE incentives, and therefore around $27k after incentives (assuming of course the $7500 rebate is still around, which it should be for a little while).