JB Straubel- Model 3 will be mostly NEW technology

[favo]

Also, cutting profit margin from ~25% to ~5% is not a technical challenge. I suspect they will try to recoup some of that with the sale of options, performance version, Ludicrous, etc.

 

[Colsla]

My guess is that Tesla will make more money off Model 3 by lowering the profit margin on basic model 3 and thus selling more options (people will have 'extra' money to spend on options) than increasing the margin on basic model 3 and selling less options.

 

[Trev Page]

The oft quoted $35k price is going to be the base price. Hardly anyone buys base configs, options will push the average selling price closer to $45-50k. I think I heard Elon mention 10-15% margins on Model 3 once but he did confirm the price is the target even if they had to take lower margins. The price is super important psychologically to attain mass market appeal. Its going to be even better once the public factors in total cost of ownership. Steve Jurvetson even mentioned in a Bloomberg interview yesterday so I know it's going to be a marketing factor with Tesla when the time comes.