Price reduction with Gigafactory?

[mk9027866]

If the key to model 3 pricing is the Gigafactory and increased battery production, would it make sense that the price of the MX and MS should come down as well in the coming 2 years?

 

[loganintx]

Only if the switch battery chemistry and type to the kind they are building for the Model 3.
When's the last time you've seen any model of any car be cheaper one year than it was the prior year???

 

[EcoHeliGuy]

Possibly,

The battery right now being produced outside of the US, is subject to tarrifs.

The Gigafactory might not be cheaper at producing batteries. But it is closer, produces more, and isn't subject to importation tariffs.

 

[Scrith]

My guess would be no price reduction, but perhaps a battery size increase.

 

[grommet]

Don't bet on it. Lower battery costs will allow more profit, and possibly an increase in kWh without too much increase. You'll notice the S has (intentionally) gotten more expensive over time. These are the cars "paying for the 3".

 

[mikevbf]

Possibly,

The battery right now being produced outside of the US, is subject to tarrifs.

The Gigafactory might not be cheaper at producing batteries. But it is closer, produces more, and isn't subject to importation tariffs.

How significant will not paying the tariffs be?

 

[Drivin]

I would hope they focus on profit and cash flow increase rather than price reductions.

 

[vandacca]

Unlikely price reductions. They'll just improve the base model instead. Besides, the actual cost of the battery is much lower than most people realize. Probably less than 25% of the total value of the car. Many articles written on this if you search...