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I don't know the regulation from your country but you are probably gonna have to pay the tax for the upgrades. It's like any other service that you use, you have to pay tax for software purchases or to use a service like renting a computer to host your files (server).Is sales tax added on to a software upgrade once the car is in the driveway?
Sales tax is incurred on the new car cost, 7.5% in my case. The $5000 AP purchase as part of the new car price costs $375 in additional sales tax on the new car. If the $6000 cost for the enhanced autopilot software upgrade isn't subject to sales tax, my net cost of waiting to upgrade is $625 instead of the additional $1000.
Tesla has to give you a proof of purchase, usually an invoice or a receipt, and they have to report all of sales to the government, that's how the government knows that you purchased a service from them.Good point, I never thought of that, if here in Ontario you would order the full package AP on M3 later on, how would the government ever know???
Its over the air update ....
Welcome to TMC. Interesting experience and perspective on pricing. I guess only time will tell if my prediction is close.I think the pricing predictions mentioned in this thread are way high. Having a $85,000 Model 3 completely defeats the purpose of this car. People willing to pay $85k for a Tesla will buy the Model S.
This is their first mass produced car, intended to be an entry level vehicle for the main stream market.
I was in the car business for 15 years and from my experience in the industry, Tesla will more than likely follow some sort of "package discount" model for their options. Or at least they should. For example, they could offer the larger battery with the super charge as one package, for what would be the price of the battery alone, etc.
They will also need to compete with other electric cars (including hybrids) at this price level if they wish to continue to sell upwards of 500k cars per year after the initial "ether" wears off.
That being said, I'd expect a well equipped Model 3 going for around $45k and maxed out no more than the $55k to $60k range. Anything higher than that, Tesla risks losing major ground in sales to competitors after the initial 500k vehicles are delivered.
This is incorrect for many reasons. Tesla does not price their cars like this.
I think the pricing predictions mentioned in this thread are way high. Having a $85,000 Model 3 completely defeats the purpose of this car. People willing to pay $85k for a Tesla will buy the Model S.
I was in the car business for 15 years and from my experience in the industry
They will also need to compete with other electric cars (including hybrids) at this price level if they wish to continue to sell upwards of 500k cars per year after the initial "ether" wears off.
No more than people willing to pay $85k on a BMW M3 instead chose to buy a BMW 7 Series. Mercedes AMG C Class vs S Class etc. Some people simply have a strong preference for a smaller car. Easier to maneuver, easier to park, and/or simply prefer the look.
Tesla selling an $85K Model 3 does nothing to prevent Tesla from selling a *sugar* load of $35k Model 3. In fact it allows Tesla ,if it chooses, to sacrifice margin at the bottom if it can make it up on top and still meet its margin and volume goals.
Doubtful it was in the marketing department of a successful firm.
And there is nothing on the horizon that matches Tesla on the entire value proposition: range, Supercharger Network, auto pilot/ autonomous mobility, design etc.
And Hybrids are crap. HEV/PHEV are intrinsically flawed having two powertrains, taking up up to twice the room, up to twice the weight, doubling complexity. Prius( the Standard Bearer of Hybrids) sales are taking a dive while Tesla sales are surging.
Welcome to TMC. Interesting experience and perspective on pricing. I guess only time will tell if my prediction is close.
I think the pricing predictions mentioned in this thread are way high. Having a $85,000 Model 3 completely defeats the purpose of this car. People willing to pay $85k for a Tesla will buy the Model S.
This is their first mass produced car, intended to be an entry level vehicle for the main stream market.
I was in the car business for 15 years and from my experience in the industry, Tesla will more than likely follow some sort of "package discount" model for their options. Or at least they should. For example, they could offer the larger battery with the super charge as one package, for what would be the price of the battery alone, etc.
They will also need to compete with other electric cars (including hybrids) at this price level if they wish to continue to sell upwards of 500k cars per year after the initial "ether" wears off.
That being said, I'd expect a well equipped Model 3 going for around $45k and maxed out no more than the $55k to $60k range. Anything higher than that, Tesla risks losing major ground in sales to competitors after the initial 500k vehicles are delivered.
I think your "well-equipped" numbers are fine. However, I think "ludicrously-equipped" examples will go for north of $75K.I think the pricing predictions mentioned in this thread are way high. Having a $85,000 Model 3 completely defeats the purpose of this car. People willing to pay $85k for a Tesla will buy the Model S.
This is their first mass produced car, intended to be an entry level vehicle for the main stream market.
I was in the car business for 15 years and from my experience in the industry, Tesla will more than likely follow some sort of "package discount" model for their options. Or at least they should. For example, they could offer the larger battery with the super charge as one package, for what would be the price of the battery alone, etc.
They will also need to compete with other electric cars (including hybrids) at this price level if they wish to continue to sell upwards of 500k cars per year after the initial "ether" wears off.
That being said, I'd expect a well equipped Model 3 going for around $45k and maxed out no more than the $55k to $60k range. Anything higher than that, Tesla risks losing major ground in sales to competitors after the initial 500k vehicles are delivered.
Maxed out you're way low
75-85k will be more in range
Mercedes base C class 35-40k mass produced entry level BENZ
Mercedes AMG version 80-85k
it's all relative as it's basically the same car
lol. You're an enthusiast, so of course buying a Tesla makes more sense to you. I was a sales director for the largest volume car network in Central Florida. We sold over 1000 vehicles per month. So yes, I am well aware what the general public likes and values in terms of cars. And this car is intended for them, not just for enthusiats as yourself.
In 3 to 4 years, Tesla would have already delivered at least the first 500k or so of these models....most to enthusiasts. Then they will need to compete with other makes in order to continue to sell 500k or more cars per year.
Who would buy an 90k Model 3 over a similarly equipped Lexus or Acura for half the price?
Only an enthisiast.
Tesla will never run out of "enthusiast."
Same nonsense was said about the Model S when the P85+ was introduced.
Tesla has more customers than they have capacity to produce P100D vehicles with prices approaching $160k. Who would buy a P100D when you can buy a similarly equipped Lexus or Acura at half the price?
Look at the recent sales of Model S vs Lexus LS460 in the US.
BTW We said Model 3 at $85k which is roughly half the price of a fully loaded Model S. Yes, if you keep raising the price $5k every 24 hrs the market for a fully loaded performance Model 3 shrinks.
Who would buy an 90k Model 3 over a similarly equipped Lexus or Acura for half the price?