TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker and becoming a Supporting Member. For more info: Support TMC

Is a $35,000 Tesla Model 3 Envisioned by Musk Profitable? UBS Says No

Discussion in 'Model 3' started by Nuclear Fusion, Aug 17, 2018.

  1. Nuclear Fusion

    Joined:
    Aug 24, 2016
    Messages:
    641
    Location:
    Your mum
    #1 Nuclear Fusion, Aug 17, 2018
    Last edited: Aug 17, 2018
    Is a $35,000 Tesla Model 3 Envisioned by Musk Profitable? UBS Says No

    Tesla Model 3 is 'military-grade tech years ahead of peers' but still expected to lose money

     
  2. kengchang

    kengchang Member

    Joined:
    Jul 17, 2017
    Messages:
    841
    Location:
    Los Angeles
    Sandy Munro says LR 30+% SR 16%, FUDDDDDDDDDDD
     
    • Like x 1
  3. Electroman

    Electroman Active Member

    Joined:
    Aug 18, 2012
    Messages:
    4,703
    Location:
    TX
    Only one who knows is Tesla.

    The rest all - including UBS and Munro are just winging their way for more clicks and cheap publicity.
     
    • Like x 3
  4. rdlink

    rdlink Member

    Joined:
    Jul 12, 2018
    Messages:
    461
    Location:
    Colorado
    Is this the same UBS who tried to do this same analysis on the Model 3 by tearing apart a Leaf???
     
    • Like x 2
  5. juanmedina

    juanmedina Member

    Joined:
    Mar 31, 2016
    Messages:
    706
    Location:
    Greenville, SC
    They don't even have the 35k with the ligther and cheaper new battery pack. It is just speculation.
     
    • Disagree x 1
  6. jmp3000

    jmp3000 Member

    Joined:
    Jan 6, 2018
    Messages:
    5
    Location:
    Austin TX
    This also UBS report also ignores the fact that 50-75% of SR purchasers will likely get either autopilot or FSD. This should easily push it into profitability for the majority of sales.
     
  7. smak

    smak Member

    Joined:
    Mar 3, 2016
    Messages:
    735
    Location:
    NorthHollywood, CA
    UBS says

    Cost of 49k model3 ~41k
    Cost of 35k model3~ 41k

    Something is wrong in that picture.
     
    • Like x 3
  8. Stirfelt

    Stirfelt Member

    Joined:
    May 3, 2017
    Messages:
    305
    Location:
    Mountain West
    My Mamma taught me .... "If you can't say something nice .... don't say anything at all."

    I've wearied of all the negative comments about everything and everyone in our society. There are people and things (Tesla specifically) that the media is going to fault for everything thing ... and mostly by writers that know little about their subject. Investigative, thoughtful journalism cease to exist. Inflammatory (the more the better), negative comments sell, and gets headlines.
     
  9. Rockster

    Rockster Active Member

    Joined:
    Oct 22, 2013
    Messages:
    1,933
    Location:
    McKinney, TX
    Yes, Tesla is betting the farm on a car that can’t be profitably built. It’s probably because they know less about the cost of making their own cars than the experts at UBS do. And the folks at Munro are clearly wrong, too. Now that I think about it, I bet that Tesla completely overlooked the fact that they need to sell cars at a profit. It probably hasn’t even occurred to them, that profit thing.

    Now that UBS has cleared things up for them, maybe Tesla can finally get their act together.
     
    • Funny x 2
    • Informative x 1
    • Disagree x 1
  10. S'toon

    S'toon Knows where his towel is

    Joined:
    Apr 23, 2015
    Messages:
    2,986
    Location:
    AB
    Base model means no pricey PUP upgrades which the current LR model has. Smaller battery. I note also they said the battery costs $178/KWh, which hasn't been true in years.
     
    • Informative x 1
  11. TurnFast

    TurnFast Member

    Joined:
    Jul 2, 2018
    Messages:
    203
    Location:
    Redmond
    What a goof by Tesla not realizing they need to make money on cars they sell. Probably some face palming going on at Tesla HQ right now.
    Glad that's all cleared up for them now.
     
  12. Nuclear Fusion

    Joined:
    Aug 24, 2016
    Messages:
    641
    Location:
    Your mum
    Yep, that’s pure profit
     
  13. smak

    smak Member

    Joined:
    Mar 3, 2016
    Messages:
    735
    Location:
    NorthHollywood, CA
    Is there a breakdown of how many people buy EAP and FSD?
     
  14. Pkmmte

    Pkmmte Le meow

    Joined:
    Sep 19, 2017
    Messages:
    464
    Location:
    Los Angeles, California
    $178/kWh?! It's like they completely ignore the fact that the Gigafactory exists! :eek:
     
    • Like x 1
  15. jelloslug

    jelloslug Active Member

    Joined:
    Jul 21, 2015
    Messages:
    4,062
    Location:
    Greenville, SC
    Is this the same UBS that has a 30% hit rate on their TSLA predictions and a -20% return?
     
  16. Rockster

    Rockster Active Member

    Joined:
    Oct 22, 2013
    Messages:
    1,933
    Location:
    McKinney, TX

    It seems that my sarcasm wasn’t dripping enough...
     
  17. Stirfelt

    Stirfelt Member

    Joined:
    May 3, 2017
    Messages:
    305
    Location:
    Mountain West
    I do not understand this statement. True, the SR does not come with PUP, but neither does the LR. (Am I correct?)

    Are you implying that PUP is not available of the SR?
     
  18. MXWing

    MXWing Active Member

    Joined:
    Oct 13, 2016
    Messages:
    4,952
    Location:
    USA
    The problem with a 35K Model 3 is it’s likely to remain a 35K Model 3 with the exception of paint.

    Can anyone find a P100D owner who didn’t take software? Probably very rare if any.

    The higher the base the higher the uptake on options.

    It’s all common sense and expected.

    I don’t see many people raising the cost of the car by over 20% to add software.
     
    • Like x 1
  19. tpham07

    tpham07 Active Member

    Joined:
    Mar 21, 2017
    Messages:
    1,830
    Location:
    Baton Rouge
    #19 tpham07, Aug 18, 2018
    Last edited: Aug 18, 2018
    Right now you have to order the PUP or you dont get a Model 3. (i mean the premium interior package*)
     
  20. Stirfelt

    Stirfelt Member

    Joined:
    May 3, 2017
    Messages:
    305
    Location:
    Mountain West
    Thanks tpham07 - My interest right now (it could change in time) is a SR with PUP, 18 inch wheels, and a color other than black. That pretty much completes my interest at this time.
    I have no need for AWD, and little interest in a performance package. (I assume that requires AWD).

    I read with interest EM's statement about battery modules, not that I understand what he said, but I am hoping the change will render a little more range than 220 mile.

    I suspect (hope) that once the federal rebate expires, there will be a modest reduction in the $9K LR cost. I acknowledge it is a good price especially with the fed credit, but I am building a house, and money it tight, even if it is a good bargain.
     

Share This Page

  • About Us

    Formed in 2006, Tesla Motors Club (TMC) was the first independent online Tesla community. Today it remains the largest and most dynamic community of Tesla enthusiasts. Learn more.
  • Do you value your experience at TMC? Consider becoming a Supporting Member of Tesla Motors Club. As a thank you for your contribution, you'll get nearly no ads in the Community and Groups sections. Additional perks are available depending on the level of contribution. Please visit the Account Upgrades page for more details.


    SUPPORT TMC