EAP standard for Model 3 in China. Sign of things to come?

[diplomat33]

I saw this Teslarati article about how Tesla has temporarily made Autopilot standard on the Model 3 in China.
Tesla makes Enhanced Autopilot standard for Model 3 in China

Sure, it might just be a temporary sales gimmick. We all know how Tesla loves to play with the demand lever when they need a boost in sales. But I wonder if perhaps Tesla is testing the waters for eventually making EAP standard on all cars? We know Tesla is close to releasing AP3. Perhaps, Tesla's plan is to eventually make the "FSD" option the new premium driving package and then EAP will become standard?

Thoughts?

 

[Peteski]

My first thought is that EAP can only become standard if they don't raise the base price of the car i.e. they give it away. I can only see that happening if FSD is really something they can sell as an upgrade in the same sort of volume as they currently sell EAP i.e. something that actually exists and adds true value even if it isn't literally FSD - which I still think is many years away. It's possible I guess and would make sense if their FSD upgrade is something substantial and not just a future promise!

 

[happyzod]

Adding EAP costs nothing. It costs tesla way less to give away EAP compared to free supercharging.

 

[Kant.Ing]

TACC is worth a lot!

 

[gaswalla]

I wonder if this will continue when AP3 hardware is released

 

[notAnExpert]

Adding EAP costs nothing. It costs tesla way less to give away EAP compared to free supercharging.

How did you arrive at this conclusion?

 

[Knightshade]

How did you arrive at this conclusion?

Really depends on what one means by "cost"

Actually flipping the switch to enable EAP on a car costs basically 0. While giving away free electricity costs not-zero (amount will vary by amount used and where it's taken).

On the other hand, if you're giving EAP away to someone who otherwise would have paid you $5000 for it then you'd have to give away a lot of free electricity before that's more expensive to you than giving away EAP was.

 

[apsen]

I saw this Teslarati article about how Tesla has temporarily made Autopilot standard on the Model 3 in China.
Tesla makes Enhanced Autopilot standard for Model 3 in China

Sure, it might just be a temporary sales gimmick. We all know how Tesla loves to play with the demand lever when they need a boost in sales. But I wonder if perhaps Tesla is testing the waters for eventually making EAP standard on all cars? We know Tesla is close to releasing AP3. Perhaps, Tesla's plan is to eventually make the "FSD" option the new premium driving package and then EAP will become standard?

Thoughts?

This is China so trade wars and other disadvantages are affecting demand. Tesla just wants to combat that.

 

[Peteski]

Adding EAP costs nothing. It costs tesla way less to give away EAP compared to free supercharging.

It's not the cost, it's the loss of all profit on EAP sales and given that the majority of Tesla buyers pay for the EAP upgrade, that is a lot of lost revenue. That's why I don't think it's going to happen unless they can achieve that same revenue from FSD sales instead.

 

[ebmcs03]

Wow! If they started giving EAP away for free in the US I would be so pissed. And will be the end of Tesla for me.

 

[mike123abc]

A lot of the features of EAP are now standard with a lot of cars. It is definitely overpriced at $5k now that other manufacturers have the most useful features for free...

Look at Toyota's free offering: Toyota Safety Sense

Yes EAP has more features, but if the Tesla's came standard with the Toyota features, few would pay for the EAP extras.

 

[Knightshade]

A lot of the features of EAP are now standard with a lot of cars. It is definitely overpriced at $5k now that other manufacturers have the most useful features for free...

Look at Toyota's free offering: Toyota Safety Sense

Yes EAP has more features, but if the Tesla's came standard with the Toyota features, few would pay for the EAP extras.

Every time I've seen a comparison, including by professionals, all the "free" systems are largely crap compared to EAP in actual use.

Only Caddys Supercruise ever comes close, and it's usable in vastly fewer situations.


As mentioned elsewhere this isn't likely a "sign" of anything other than China has tarrifs jacking the price of Teslas made in the US right now so they need to add some value without raising the price of Chinese market cars until Gigafactory 3 comes online.

 

[Glamisduner]

Wow! If they started giving EAP away for free in the US I would be so pissed. And will be the end of Tesla for me.

I think this will eventually happen. Same as them dropping the price of the performance car a week after I purchased, and all their other constant price changes. That car is with white interior is now $8600 less only 3 months later. Of course they gave out some refunds and the tax credit is less now so I guess it's a wash for buyers. However the actual price change is crazy.

I think they will continue to drop the cars price as production is fine tuned, or they will start giving away EAP to combat the end of the tax incentive.

 

[Silver Ghost]

It is all a question of supply and demand. They have a lot more competition in China than in USA. They need the new orders to role in “now” so they get some cash flow going.... They may give it to the early adopters like they gave us free LTE or Free supercharging.

Ultimate Tesla China is where the new stuff will come out then later on come to us in North America- like many other companies already do. We are techniclogically unfortunately behind then now in “some” area. They filed for more patents last few years than we (USA) have.
Let the hate mail start. I am an observer only

 

[Shock-On-T]

Wow! If they started giving EAP away for free in the US I would be so pissed. And will be the end of Tesla for me.

Also your sibling got one more Christmas presents than you, plus they got ice cream and you didn't because you wouldn't finish your dinner.

 

[1HandedBandit]

Wow! If they started giving EAP away for free in the US I would be so pissed. And will be the end of Tesla for me.

Are you twelve?

 

[MXWing]

Everyone needs to dry their panties out.

Come March 1st, tariffs will ratchet up to 40% again in China.

Tesla HAS to sell every car they can before now and then.

They will be absorbing far more in losses per car than their proactive promotions now.

40,000 in store credit is cheaper than 40,000 RMB off the bottom line.

 

[happyzod]

It's not the cost, it's the loss of all profit on EAP sales and given that the majority of Tesla buyers pay for the EAP upgrade, that is a lot of lost revenue. That's why I don't think it's going to happen unless they can achieve that same revenue from FSD sales instead.

It's a demand driver. Kinda like how free supercharging is a demand driver. Free EAP will push people to put the order in for that AWD or Performance Model. Both are high margin and Tesla needs the profits and cash flow to be profitable. They can probably make up the lost sales by jacking up the FSD prices for China when HW3 gets announced.

 

[Peteski]

It's a demand driver. Kinda like how free supercharging is a demand driver. Free EAP will push people to put the order in for that AWD or Performance Model. Both are high margin and Tesla needs the profits and cash flow to be profitable. They can probably make up the lost sales by jacking up the FSD prices for China when HW3 gets announced.

I can understand this in China, but not in the west. Other manufacturers like Audi, Merc, BMW, Porsche, Volvo etc all charge for optional driver aids and most of them are nowhere near as capable as current EAP. Tesla have no incentive to make EAP free in the US or Europe right now, especially not on the Model 3. If it does become free, it would be far more likely to happen on Model S/X first.

IMO, there are only 3 things that could change things to potentially make EAP standard across all markets:-

1. A price increase (as they did with S/X when making previous options like the PUP and premium interior standard)
2. FSD being released as a significant upgrade to EAP
3. EAP features becoming standard issue across the whole market sector (like ABS brakes for example)

I think 1. is pretty unlikely given the pressure to keep the base price of the Model 3 down.
2. is a possibility for sure if it's actually good enough to sell on top of EAP
3. I think is still a good few years away