Joking! I've lived in the Midwest my entire life admiring the steam billowing from nuclear power plants and my old man supported his family in part representing central Illinois strip mining companies.
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Tesla Model Y Standard Range AWD to be priced at $59,990 USD
- Thread starter !igs
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Still not an ADM. It is plain and simple a price increase for supply and demand. ADM which is charged on all the above EV's mentioned is dealership games and prejudice they play based on circumstances. Can't even come close to comparing the both.
I agree with most of what you said. However, the interior pales in comparison to Tesla. Driving a Tesla is like driving an iphone and other cars are like old Nokia phones. The software also makes a huge difference. Most other competitors have buggy software let alone all the product launch issues that may encounter. But I agree that Tesla prices are out of control.
ZenRockGarden
Active Member
Everything you say is true... and Tesla will still sell every car they can make at $59k, which is why that price point is "right" at the moment even though we'd love to see something in the low 50's
Keep in mind that the ability to buy competitor products like the Kia, or Hyundai involve facing $10k size markups at dealers if you want to actually GET one.
Standard range MY out of Austin makes complete sense during the production ramp of both the cars and the 4680 batteries. They can build and sell more cars with smaller battery packs, but with 2 motor performance. It's an attractive car with a bit better price regardless of chemistry if you don't need the extra range. It mostly avoids the obsolescence of the Fremont LR without the giga castings, structural battery pack, and 4680s. Imagine the scenario of Tesla dealing with customer fighting over Austin vs. Freemont if they were both MY LRs at the same price.
Hurricane4911
IT Guy From 1980-2013, Retired
Disagree...
Tesla has substantial margins over their competition.
Tesla's margins are 22% vs. GM 12%. Even higher than Ford. Margin estimates for the new SR equal or exceed 20%.
Nope...
Tesla could sell these for $52k and still make more money per sale than anyone.
Cheers.
ZenRockGarden
Active Member
You're not making much sense, at least not business wise.
Yes, we'd all prefer to see a $52k MYAWD, and Tesla could sell them at that price.
But Tesla can also sell every single unit they can make at $59k. WHY would Tesla walk away from the additional $7k per car margin?
CoryARamirez
Member
Would be cool to see Tesla implement some form of a loyalty program like BMW/Lexus, even if it’s a small little $500 rebate lol. I’m sure there’s lots of multiple modes owners out there.
ZenRockGarden
Active Member
Are the margins Really that separated? Last I checked the other manufacturers aren’t also building Shell and BP stations around the US to support their market.
Hurricane4911
IT Guy From 1980-2013, Retired
I was surprised too...
Gross Margin
(Source)
The bigger opportunity missed is more SR 2022 orders for Giga Austin while in startup.
edit: Chart added
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I think you might be confusing $0.35 with .35 cents. I doubt you are paying 1/3 cent per kWh.
I pay $0.095 (9 1/2c) per kWh in the winter, and $0.168 in the summer for charging between midnight - 6am. I'm in NorCal (SMUD territory).
With SMUD - you also get an $0.015 EV discount when you register your EV with them (so long as registration matches service address).
ZenRockGarden
Active Member
I don't think we know what most carmarker margins are purely on their electric cars. With Tesla you can kinda do the math because it's all they make.
Seeing cars from VW, GM, etc with 80 KWH battery packs and prices in the 40's makes me guess that right now, they're not making any money at all on their electric vehicles against current commodity prices. Big makers don't adapt quickly, so perhaps their prices will rise a bit later than Tesla since for now they've just let their dealer networks make the "market adjustments" to the stickers.
The Chinese and other Asian markets (India, Pakistan, Vietnam, Korea, etc.) is the reason for the cheaper model. Massive market, rapidly expanding, and lower-cost homegrown EV options which are expanding from low-priced models into Tesla's higher price points as their populations start to afford more expensive cars.
ZenRockGarden
Active Member
But again - even in those markets Tesla is selling every vehicle the factory can make using the existing models.
Of course there's additional (lower margin) market share to be had in the future with a "2" series - I just can't see any reason for Tesla to chase it right now if it means taking resources and factory capacity away from what's already maxed out at higher margin.
Clearly not a lot of business people here. Stop comparing Tesla to any other car manufacturer. They are maximizing their production and there is still a 6 month wait to get a car. It is called business. You are in business to make money not create a charity because people whine about the price. If you can’t afford a Tesla at $60k then move on down the road. Not everyone can afford a Porsche either but it doesn’t mean they are entitled to make a “cheaper” version so everyone can buy one.
If I were Tesla continue to do exactly what you are doing. Keep raising prices until the supply and demand curve starts getting your wait time to 6 weeks. Take all that margin and buy and build more factories. Then once you continue to drive production you can balance the volume play and offer a lower margin/cost car.
Stop the crying about the cost of a Tesla. There is a reason Elon is the wealthiest man in the world. If you don’t like the price there is always Toyota for you.
ZenRockGarden
Active Member
Yep, and when I went to Toyota seriously considering buying a RAV4 Prime, they wanted $60k for it (including the dealer's hilarious $12k markup).
The reason you want to capture the low-end/intro buyer market is that people are creatures of habit. We have all heard people say they are Ford, Chevy, Dodge, BMW, or Tesla guy/gal.
Low-end cars are a gateway to creating a long-term buyer. One that causes buyers to compare every other brand to "their" brand. And allows the buyer to blow off the eccentricities or flaws of "their" brand and focuses on how other brands did things the "wrong" (I.e., not the way my brand does it) way. This goes to how the cars look, how controls are laid out, etc. This creates a long income stream for the companies that can span decades with increasing margins as people move up the price ladder. And it is always easier for a buyer to mentally justify moving up to a more expensive car that is similar to what they had before.
Tesla really wants to have what I call the "good problem" (too many buyers for your capacity) for the long term. They know they can improve the Alien Dreadnought machines aka Gigafactories they are building to meet those future demands.
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