Welcome to Tesla Motors Club
Discuss Tesla's Model S, Model 3, Model X, Model Y, Cybertruck, Roadster and More.
Register

Is the 35K Model 3 the pound for pound best vehicle?

This site may earn commission on affiliate links.
It's silly to even compare the Model 3 to acknowledged compliance cars. The manufacturer has no real intent to provide the car to everyone who wants it and instead sells them in states where they can get a bit of $$ back for making a green car. That's because it's damn hard to make a profit off of an EV. Therefore unless you happen to live in one of these states, the car is practically nonexistent.

You can do anything if you are willing to pay
I didn't have to pay extra for it. Tesla did that for free.
you really had to spell it out for him/her, lol
 
...
I do think that they will make a profit on most of the SRs that they sell because if the customer chooses even a couple of options like the new cheaper $3,000 AP, or the $2500 slight upgrade to the cabin, or overpriced Tesla paint then they will probably push Tesla over to where they turn a small profit... hard to say whether it will be truly profitable when you account for warranty costs, etc., over the life of the car... but what it will do is keep the factory going, keep parts orders going and all of that results in a cheaper and cheaper car for Tesla to build.

The real question for Tesla I think is where the cash is going to come from for a Model Y line and pickup line if they don't post a profit this quarter and barely eke one out in Q2. Guess we'll see. Elon is definitely refusing to go back to the well. By comparison Amazon didn't make a nickel for well over a decade and was lavishly showered with investment cash... so clearly there's a double standard at work.

My guess is the only margin on the true 35k base model is the destination fee. But it seems like the strategy is really using the 35k model to get people shopping and then to have them realize that they really want the SR+ for an extra 2k, and they want a color other than black for 1.5k, and autopilot is only 3k more, why not? If cost is $35k then this configuration brings the cost to $41.5k at an 18% margin. Not bad.

Regarding cash for Model Y, Elon should have raised capital. What's a little capital raise between friends when the stock was at $360?Even at $300 a share a 2.5B capital raise would only dilute shareholders 5%. As a shareholder I would have been happy with that, since it would give Tesla a better credit rating along with the flexibility to invest in new products and higher growth rates. I still hope someone helps Elon see the light on this. I definitely think the stock would have been higher now if they had raised, and also if Elon had not turned off investors with his stunts.
 
  • Like
Reactions: MXWing and mattjs33
@MXWing, where you been? Missed you.

Anyway, yes I was a bit surprised by the news yesterday. If I'm being honest, the $35K version seems to be the one to buy. I can drive on my own so I don't need the alphabet soup PUP EAP FUD TKO WTF or whatever it all is. I still hate the screen but I get why it is the way it is.

Tag me anytime bud. You were first in my head when I saw the 35K Model 3 news.

I missed you as well. Like a hog missed slop, like a baby missed mammy's titty!!

(Django unchained reference) lol

37K is the version to get. Tesla really needs that extra 2K straight margin. Extra tax credit pays for it.

How much experience do you have with EAP? You can’t say me or anyone else that gets it “can’t drive” or “doesn’t like to drive”. We have the option to drive if we wish and the option to relax when we wish such as divided highways or bumper to bumper traffic.

Screen really bother me honestly. You just adapt to it. You will see all the pre reviews question the screen. However in production and release, no one knocks it.

The real story here is Elon telling the world they can only sell this car profitably by completely gutting the sales and marketing teams. I was up late last night with a bad cough and read a few things, did some thinking on it.

As one who railed Tesla hardest on where the hell the $35K car is, this does not look like maybe the best move right now. I'll just say this, there are a lot of people who will look at this as a desperation move. I don't know if it is, but it can sure be colored that way. The very fact they are saying you can order the base car today and get it in 2-4 weeks means there really wasn't anything left of their Day One reservation list. Also, weren't they supposed to be focusing on EU and China cars for the next few weeks, and selling from inventory here? When are they going to build these SR cars?

It IS a Tesla desperation move and I don’t like it. My ideal timing is Tesla holds off on this until July-December.

When Tesla is committed to building and selling 400K-500K cars per year, you can’t have lines be idle. Sell cars at all cost. Even at no profit to keep your workers employed and equipment working.

China and EU can also only absorb so many premium cars. Not enough and fast enough in a way to make for happy quarters. Wall Street looks at quarters and not at decades so Tesla was best served going private.

They can build those SR cars NOW and timed as such that no more cars are going to make it to overseas now to count for Q1.

5000-7000 cars a week production is a lot. Tesla delivered 40 Model 3s in July 2017. Their ability to mass produced cars has arrived. Not an alarm to get the SR car quickly.

Tesla IS desperate but there’s some context to that.

Let me add some color to Tesla’s desperation’s.

1.) They have to survive long enough to get the Model Y out. That’s like the final Pokémon form that kills everyone. Just survive somehow. Make cars, sell them, show market growth.

2.) What isn’t being said is traditional auto is screwed. With incentives, you can be pretty much out the door 35K Model 3 in garage. You are soooo dead trying to palm off your A3, 3 Series, C series etc. There is value to “market disruption”.

I'm interested in your take, someone elsewhere here last night indicated the weight on the MR car was close enough to the SR cars to indicate merely a software limited battery for the base car. If so, that's going to eat into their (admittedly high) margins. The rest came from seats and audio? I dunno.

I’m not fully up to date so what I am going to say might have already been proven wrong. I highly doubt the SR is a battery locked MR. They have the option to just include less batteries. Batteries are a resource.. they can be going into Powerwalls which are lagged for months.

I personally also think closing the stores is a bad idea. Elon really wants to commoditize automobiles and I just don't think the world is ready for that. Cars are a huge, emotional purchase and saying there are no test drives will not play with a lot of people. They can trot out the 82% online purchase rate all they want but I still think even today the Model 3 is still solidly in fan / early adopter mode. And folks telling me to just Turo a test drive seem to forget that traditional test drives are free. Last year they invited owners to be at delivery events to tout the cars and help new buyers, now they are saying they don't need anyone for that? Seems weird.

Those buying a 35K Model 3 I think if given the option to buy it online or not at all would go with the former. I hate seeing prescence diminish, I hate people losing jobs, but rent and salary isn’t free. Something has to give. Also, while Tesla has done dumb things and will continue to do so, we have to believe they are rational actors working in their own best interest.

Where the ROI justifies events, centers and staff - they will still have them. It’s not a cut it all 100 percent or cut 0 decision. Truth is in between.

I also question the thinking they can address most service issues with ranger service. There's a lot of threads here about service issues and I just don't see how anyone can afford to service a couple hundred thousand cars buy sending techs individually out into the field. And saying most service in an hour is just not realistic, most people with even a little experience in this area can see right through that. With the critical tech shortage we have now, where are these guys going to come from?

Speaking from experience with the mobile service I’ve had, they can do a lot. Most complicated thing I’ve seen first hand is replacing a charger. Can’t see anything not serviceable other than digging into the battery pack. I don't have the numbers on me but I really recall reading the Tesla electric vehicles have FAR LESS parts than a ICE vehicle.

They likely will have to grow both service centers AND mobile fleet. WHAT they probably will scale back on is
-Galleries
-Sales Centers
-Delivery Centers

There's variations of 3 of the above that may or not be combined.

I'm quite interested in how the markets respond today and what industry types are saying about it in the moment. One way or the other this is a turning point in Telsa's history. As always I'm curious of your thoughts.

Car looks nice though.

I think this thing will be spun 7 ways from Sunday. All sorts of bull and and bear narratives. OBVIOUSLY, Tesla will do better if they sold all P cars.. But less than 35K out the door cracks open new segments.

Tesla might lose a bit on the short run - BUT when going up against a 35K Model 3.

Toyota
Chevrolet
BMW
Audi
Mercedes

should be scared *sugar* less.
 
For the value, 35K Tesla can't be beaten with supercharging network. I didn't think it would get a glass top.

If (big if) Tesla will not lower the price, I think the people who buy now until June 30th may get the best deal along with the Federal tax credit.

I initially waited for this 35K model 3, but my impulse plus the tantalizing FUSC triggered the purchase of Model 3 Performance. Financially I regret that I should have waited longer.

The experience has been unparalleled and I had more months of driving this fantastic car. I am still happy with the car.
 
  • Love
Reactions: MXWing
How much experience do you have with EAP?

None, honestly the only Tesla I've ever sat in was a Roadster back in 2010 at the Chicago store. Was a different time. Anyway only until recently did someone buy one whom I know well enough to ask for a ride. Really want that chance because I love all cars mostly and always looking to add another experience. I even drove a Think once because why not (actually liked the stupid little thing too).

When Tesla is committed to building and selling 400K-500K cars per year, you can’t have lines be idle. Sell cars at all cost. Even at no profit to keep your workers employed and equipment working.

China and EU can also only absorb so many premium cars. Not enough and fast enough in a way to make for happy quarters. Wall Street looks at quarters and not at decades so Tesla was best served going private.

They can build those SR cars NOW and timed as such that no more cars are going to make it to overseas now to count for Q1.

5000-7000 cars a week production is a lot. Tesla delivered 40 Model 3s in July 2017. Their ability to mass produced cars has arrived. Not an alarm to get the SR car quickly.

This is the part I don't get. For the bulk of January and February they were slinging out overseas market cars, and this was supposed to be the next big wave of business for them. Everyone here argued they need to sell high end versions while they can - which makes complete sense from an economic standpoint. To be clear, I didn't think the $35K car would arrive this calendar year (if at all) but now that it has I cannot understand why. If demand was so high overseas then they should be able to spend at least half the year selling there. Like you and others said, there was no reason to sell the $35K car now.

So I can only think that demand overseas is not as high as they might like us to believe. The tariff situation is certainly not helping (thank you President Idiot), but I would think the EU and China combined could easily absorb more than two months production so far.

1.) They have to survive long enough to get the Model Y out. That’s like the final Pokémon form that kills everyone. Just survive somehow. Make cars, sell them, show market growth.

This is what I mean. If demand is so high globally, why are they having to roll out the US $35K car now, in concert with massive cost-cutting measures, in order to "keep the lines moving"?

I agree the Model Y is desperately needed and with the benefit of hindsight it's obviously what Tesla should have brought out first. Although I'll argue the Model X is barely an SUV as built (very little U), so the Y had better offer a little bit more than just panache to compete in the VERY crowded midsize SUV market. Being electric only gets you so far.

What you need to understand is my whole issue with the $35K car is they should never have declared that to be the starting price in 2016. It became an obvious loss leader statement once everyone realized they knew they couldn't possibly build it yet. See they measures they are taking now, just to be able to.

2.) What isn’t being said is traditional auto is screwed. With incentives, you can be pretty much out the door 35K Model 3 in garage. You are soooo dead trying to palm off your A3, 3 Series, C series etc. There is value to “market disruption”.

Is there though? What exactly does that get you besides a lot of imitators? Honda brought out Acura and disrupted the traditional luxury market and yet now Lexus does it better than they, and Acura struggles to find an identity. Be careful what hornets' nest you swing at.

Those buying a 35K Model 3 I think if given the option to buy it online or not at all would go with the former. I hate seeing prescence diminish, I hate people losing jobs, but rent and salary isn’t free. Something has to give. Also, while Tesla has done dumb things and will continue to do so, we have to believe they are rational actors working in their own best interest.

What Tesla has done really is create a whole new genre of enthusiasts. They may or may not have started out as traditional automobile enthusiasts, but they've become Tesla enthusiasts and they buy into the whole deal. The idea of this "mission", "disruption" and a "new way to buy cars" leads a LOT of people to be REALLY excited about buying a car online. Going exclusively online will not hurt Tesla in itself since most orders were done that way already. But there's TONS of benefit to being where people can see, and touch, and experience.

There's a reason retail shops want to be where they're highly visible. Tesla shutting down a larger portion of their retail footprint is a massive mistake in my opinion. There is still a huge number of people who really don't know a lot about Tesla and what they are other than "those electric cars". People in California can't see this because they are All In on it and Teslas are everywhere. It's not like that in large portions of the country.

Take myself for example. I've seen lots of them, know lots about them from being here, but I've yet to sit in one really because they don't have a showroom near and don't do auto shows. Do you think I would feel differently about Tesla's cars if I had first hand touchy-feely experience with them?

I don't have the numbers on me but I really recall reading the Tesla electric vehicles have FAR LESS parts than a ICE vehicle.

This argument is always made, and I always have to counter it. We really don't sell engine / transmission parts that much anymore. They're made so well now, and the oils are so good. What we sell the most of are chassis, brakes, and electronic stuff, that EVs have just the same as ICE cars. Teslas will need service all the same.

Tesla might lose a bit on the short run - BUT when going up against a 35K Model 3.

Toyota
Chevrolet
BMW
Audi
Mercedes

should be scared *sugar* less.

Why? I haven't had it explained to me why Tesla can't coexist in the market with the legacy OEMs. Why does the success of Tesla preclude the success of they others? It's a bit presumptuous, don't you think? Just by sheer capacity alone Tesla cannot satisfy the market to the death of the others anytime soon. There are something like 40 brands in the US and some are better than others, but they all sell cars. If Tesla truly had the power to put Toyota out of business then Mazda and Mitsubishi would have already closed up shop.

Tesla is going to have the top-selling non-pickup light vehicle in the US sometime this year, mark my words. It doesn't mean they others are going to be like "whelp, I guess that's that, nothing we can do."

I have to ask, so many people here use the euphemism *sugar* that I assume the forum software is automatically substituting sh*t with *sugar*. Am I correct?
 
It's silly to even compare the Model 3 to acknowledged compliance cars. The manufacturer has no real intent to provide the car to everyone who wants it and instead sells them in states where they can get a bit of $$ back for making a green car. That's because it's damn hard to make a profit off of an EV. Therefore unless you happen to live in one of these states, the car is practically nonexistent.



you really had to spell it out for him/her, lol
Why do you think it's hard to make a profit building an electric car?

An electric car has far fewer parts and they charge more than for a standard ice car.
 
  • Funny
Reactions: voip-ninja
Why do you think it's hard to make a profit building an electric car?

An electric car has far fewer parts and they charge more than for a standard ice car.

Um... Evidence with Tesla should suggest that it is.

Not to mention pretty much every other OEM that has an EV has stated more or less the same thing.

Development isn't free.

Seriously I hope this post wasn't made in jest.
 
Um... Evidence with Tesla should suggest that it is.

Not to mention pretty much every other OEM that has an EV has stated more or less the same thing.

Development isn't free.

Seriously I hope this post wasn't made in jest.
No not jesting at all. It takes far far fewer parts to make an electric car.
I realize there is a lot of research and development costs up front ( especially for software ).
But the overall cost of production should be much lower than for ICE vehicles.
And car dealers hate the idea of electric cars because there is much less to be serviced. This cuts into their profits big time because car dealers make most of their money in the service bays.
 
Why do you think it's hard to make a profit building an electric car?

An electric car has far fewer parts and they charge more than for a standard ice car.

The major expense is the battery. It costs so much that the overall cost of the car becomes unpalatable for most buyers. This is why Tesla and other serious EV manufacturers HAVE to target the high-end market first - essentially masking the cost of the battery with low-cost "premium" trims and packages. Tesla is the only manufacturer attempting to leverage economies of scale to bring down battery costs. Until other manufacturers do the same, they will continue to crank out compliance EVs or very limited production luxury EVs.
 
  • Like
Reactions: mattjs33