-
Want to remove ads? Register an account and login to see fewer ads, and become a Supporting Member to remove almost all ads.
DS you're not looking at it the right way.
$5k (price of eap) x 100k approx $1/2 a billion in free giveaway.
I doubt it cost any more than $5m to develop Autopilot in software developer time or roughly 50k hrs or 25 developer yrs.
As for the hardware it is in the base price of mdl 3.
$5m/100k or a $50.00 freebie.
Same with fsd- so giving away $100.00 to each pre unveil reserver doesn't cost much at all.
They will still make a ton off mdl Y and rest of model 3s (350k) and others.
You could double it to 20m for both or 10m each (adding r and d for both)- it's still only 400.00 when they will make over 8k profit off the base car.
It's an easy give away to pump the new development forward.
Again, purely my opinion.
$5k (price of eap) x 100k approx $1/2 a billion in free giveaway.
I doubt it cost any more than $5m to develop Autopilot in software developer time or roughly 50k hrs or 25 developer yrs.
As for the hardware it is in the base price of mdl 3.
$5m/100k or a $50.00 freebie.
Same with fsd- so giving away $100.00 to each pre unveil reserver doesn't cost much at all.
They will still make a ton off mdl Y and rest of model 3s (350k) and others.
You could double it to 20m for both or 10m each (adding r and d for both)- it's still only 400.00 when they will make over 8k profit off the base car.
It's an easy give away to pump the new development forward.
Again, purely my opinion.
In no way will you get 50% tax incentive with dual motor. It'll be 1/4 or gone. Many wanted dual motor but now will take delivery as quickly as possible instead. If you wait for dual motor you'll likely lose 6000 easily from the wait plus the cost of the dual motor upgrade and upgraded battery pack-I'm also assuming that pup will also be required. So you lose a ton of money by waiting and it will cost significantly more and lost time driving the tesla. If $$$$ matters to you - waiting is a horrible thing to do now.
You'll need to show your math on that one. Current estimates have them hitting 200K in Q1 of 2018, so the half credit would be there from 1 July through the end of the year which is when they are starting dual motor production. There should be tens of thousands delivered that qualify for the half credit, and probably some that get the full.
JeffK
Well-Known Member
According to the delivery estimator... it'd be 1/2 tax credit, as it'd be H2 2018. So there's that.
Last edited:
I'm looking at it just fine. My example was solely directed at Garlan's post. In the overall view though, the point is that Tesla is a business and they need to make profits to stay that way. Regardless of what value you or anyone else tries to put on something, Tesla has decided that the cost for EAP is $5K. Giving the software away represents a potential lose of $5K for each one. That is a significant amount of money whether you think so or not.
boiler81
Member
Yeah half the credit maybe gone waiting for AWD, but you'll be getting a superior model 3, with better acceleration, traction, and range. Hopefully by then most of the M3 "start-up" production problems will be worked out, and more options will be offered
.
.
ummgood
Member
If you haven't driven both a RWD and AWD Tesla and live in a moderate climate like I do you might want to go for a test drive and have the sales guy turn on/off the dual motor. I did this with a P90D and had them cripple the car down to a 75 and 75D so I could try both. Honestly I didn't notice much difference. Both felt amazing.
So if you don't have to deal with ice/snow often and are thinking of waiting out for the dual motor it might not be worth it to you. I was convinced I was going to need dual motor or even performance but the 75 performance was so much more than I was expecting.
So if you don't have to deal with ice/snow often and are thinking of waiting out for the dual motor it might not be worth it to you. I was convinced I was going to need dual motor or even performance but the 75 performance was so much more than I was expecting.
Originally mine said July 2018, but for day 1 reservations by owners, AWD is expected to be out in May 2018. I suppose it could slip but the time frame did move up a couple of months since the delivery event. If delivered in May-June, I would expect the full tax credit.
JeffK
Well-Known Member
While true, you're also still paying for that upgrade... the penalty for being a first day reservation holder and wanting AWD/P is unfortunately $3750 unless they get AWD out the door sooner.Yeah half the credit maybe gone waiting for AWD, but you'll be getting a superior model 3, with better acceleration, traction, and range. Hopefully by then most of the M3 "start-up" production problems will be worked out, and more options will be offered
I hope the timeline does get pushed up and our loyalty is not rewarded with a higher net tax bill. I'm not sure whether to be insulted or not that someone who reserves a Model 3 months after we did can get a vehicle before the early reservation holders waiting for AWD by ordering a vehicle which gives Tesla lower margins.
I totally understand getting the $35,000 model out as quickly as possible to deliver on their $35k promise. However, once the early reservation holders' orders have been filled for premium and base RWD models they should immediately switch to AWD/P instead of filling later RWD orders. That's just my opinion of a way to reward loyalty.
We'll have to see if they have early manufacturing issues which delay things or if things go rather smoothly.
JeffK
Well-Known Member
I was in line that morning in March. I got my two drawings for my two deposits.
Here's a thought.. If Tesla offered FREE FSD to those in line who buy EAP, effectively putting full autopilot on sale for $3,000 off, I *might* be convinced to spend the $5K on EAP.
Here's a thought.. If Tesla offered FREE FSD to those in line who buy EAP, effectively putting full autopilot on sale for $3,000 off, I *might* be convinced to spend the $5K on EAP.
xmetal
Member
I think that if Tesla wanted to give something away that a.) wasn't a physical item they had to produce and b.) didn't hurt the bottom line much than the most obvious choice would be a little extra free supercharging for some period of time. That would not cost them anything in the short term and in the long term, I would guess that a large portion of people would never even take advantage of it because they don't travel long distance and charge at home everyday.
Mine says July - Sept 2018 for AWD, unless it moves up a few months I'll pass on AWD, and get the base which, for me, says Jan - Mar 2018. So that should almost certainly get me the full credit.
Besides a day 1 reservation and being an owner, I'm in Colorado which seems to be far enough west for first half of 2018 AWD deliveries. I wonder if Colorado is the cutoff state. They have a ton of reservations in Colorado and AWD is quite popular so maybe they moved it up for Colorado?
Garlan Garner
Banned
My thought is this:
I'm not denying that to you and I it looks like a lot of money. I assure you that AP does not cost Tesla $5k to duplicate. How much do you think it costs Tesla to duplicate that software?
You are looking at how much money Tesla "could have made". "Could have made" is not a loss.
Its not a lot of money to a company who's revenue rose to $2.79 billion from $1.27 billion last quarter alone.
Its kinda like when a company like taco bell gives away 1 taco to everyone in the US on national taco day......does it cost a lot? Maybe....it depends on how much it costs taco bell to make a taco.
stopcrazypp
Well-Known Member
By your logic, all software should be free. And you say you are a software engineer? Software companies won't survive if they followed your logic.
And even if we buy that assumption (that software is worth no money) I think this is worth reposting on why this costs Tesla more money than a token gift:
Last edited:
In the most basic economic sense, yes it is.
Canuck
Well-Known Member
Yes, and that's why the courts will award damages for "could have made" -- because it is a loss.
Similar threads
