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

[adaptabl]

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.

Completely true.

 

[tivoboy]

I think where this report is/could be way off is their calculation and allocation of R&D and marketing expense (of which there is nearly none, most of the marketing expense is across the whole company).

But this graphic is nice, neat representation of where everything is on the car. Sort of .

 

[smak]

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.

While it's true that if you can buy a $135k car, you'll add on $5k, I don't think it's necessarily the opposite on the low end.

I think there will be a lot of people who don't want to pay 9k for a bigger battery they'll never need, and will be fine with the car without PUP, but really want auto-pilot.

And all the combinations in between.

 

[Stirfelt]

smak - I agree. Just because a buyer has no NEED for a LR battery, does not mean that he is not interested in other features, especially an upgraded interior and better sound system.
It's almost a "put down" to say ... if you can't afford a LR battery, then you would not be interested in other upgraded features, when in reality, cost is not the entire reason for an interest in the SR.

My question is: will the upgraded features be available in the SR battery?
I doubt AWD and the performance package will, and I'm OK with that, but I hope the other niceties will be offered.

I wish Tesla would be more forthcoming.

 

[Runt8]

My question is: will the upgraded features be available in the SR battery?
I doubt AWD and the performance package will, and I'm OK with that, but I hope the other niceties will be offered.

I wish Tesla would be more forthcoming.

AWD has been confirmed for the SR.

Clay McDonald on Twitter