Estimated $85M Additional Revenue from Model 3 AWD Acceleration Boost

[primo]

Here is a rough estimate of the additional revenue Tesla may realize in Q4 from the recent acceleration boost upgrade that was made available to AWD Model 3 owners (non-performance) a few days ago.

There are approximately 371,000 Model 3's in the fleet according to this source.
Tesla Model 3 - Wikipedia

Assuming that 1/3 of those are AWD Non-Performance models = 122,430. If someone finds a source with a more accurate estimate of the # of AWD M3's, please let me know.

According to this pole, 35% of AWD owners will purchase the upgrade = 42,850 vehicles.
MASTER THREAD: "Acceleration Boost" option, discussion as to which models and how much quicker

Estimate of additional revenue.
42,850 x $2000 = $85,700,000

What are the margins on this?

100%?

 

[bhtooefr]

Could be less than 100% if warranty allowance is increased to compensate for additional wear. Still, it's likely quite high.

 

[DaBagBoy]

I have 21,464 miles on my car and would have skipped this...but the stock is on such a tear...and it's almost Christmas....so like a lot of others....vroom, vroom or more appropriately woosh, woosh

 

[glide]

You’re making a lot of assumptions and you have no idea what the take-rate is.

 

[ewoodrick]

I don't think that the uptick will be that much. AWD non-P folks made a definitive statement that they didn't want to pay for the additional performance. The vast majority think that the car already has more than needed acceleration.

 

[Chisale]

There is a difference between someone hitting "yes" on an online poll and hitting "yes" on the purchase button on their app. That being said,even if it was half what you calculated, then sure, it's quite a nice margin for the company.