Over and over people imagine that there is no need for smaller cars than Model 3 and/or Elon has said there will not be any such vehicle and/or small means cheap and low margin. If my memory is correct every single opinion along these liens comes from somebody in North America.
Major auto markets such as India, Brazil, all of Europe and Africa plus almost all of Asia has strong preference for smaller vehicles, whether cheap or expensive.ts a
Until the chip shortages are resolved there is no way to serve these markets with any products at all, except perhaps as a preliminary market test. Hence Elon's comments.
Most posters equate small with low margin. That is false.
Despite repeated detailed explanations that even include relative pricing and volumes of various small car versions these incorrect posts keep happening.
Please, when considering vehicle form factors consider the worldwide vehicle size distributions and check out the Posted Prices by version, then compare relative volumes. Such analyses have been posted innumerable times.
Once that has been done then examine where Tesla has sales today and how closely the current model availability corresponds with market shares.
Bluntly, Tesla can easily quadruple sales without hampering margins once there are smaller models available using Tesla design and construction technologies.
In this post I am not repeating any of the data that has already been posted periodically by several of us. I will offer some obvious hints:
Compare BMW 1 series models for base price and higher end price. Then check volumes for each in any given market.
Compare similar choices for any major OEM.
Next make sure to check, for example, Toyota Corolla pricing and features between, say, the USA and , say, Brazil. You'll discover that many models sell and are priced as luxury vehicles in some markets and in others as cheap entry level basic ones.
Finally, consider the cost accounting consequences of increased volumes in capital intensive products.
All that might well help us to avoid superficial and incorrect generalizations.
Note 1: I apologize if my tone seems strident. It becomes a bit tiresome to keep seeing the same reasoning over and over.
Note 2: These comments are in part driven my my habit of buying 'hot hatches' over the years, invariably with ASP of roughly twice the base model.
Major auto markets such as India, Brazil, all of Europe and Africa plus almost all of Asia has strong preference for smaller vehicles, whether cheap or expensive.ts a
Until the chip shortages are resolved there is no way to serve these markets with any products at all, except perhaps as a preliminary market test. Hence Elon's comments.
Most posters equate small with low margin. That is false.
Despite repeated detailed explanations that even include relative pricing and volumes of various small car versions these incorrect posts keep happening.
Please, when considering vehicle form factors consider the worldwide vehicle size distributions and check out the Posted Prices by version, then compare relative volumes. Such analyses have been posted innumerable times.
Once that has been done then examine where Tesla has sales today and how closely the current model availability corresponds with market shares.
Bluntly, Tesla can easily quadruple sales without hampering margins once there are smaller models available using Tesla design and construction technologies.
In this post I am not repeating any of the data that has already been posted periodically by several of us. I will offer some obvious hints:
Compare BMW 1 series models for base price and higher end price. Then check volumes for each in any given market.
Compare similar choices for any major OEM.
Next make sure to check, for example, Toyota Corolla pricing and features between, say, the USA and , say, Brazil. You'll discover that many models sell and are priced as luxury vehicles in some markets and in others as cheap entry level basic ones.
Finally, consider the cost accounting consequences of increased volumes in capital intensive products.
All that might well help us to avoid superficial and incorrect generalizations.
Note 1: I apologize if my tone seems strident. It becomes a bit tiresome to keep seeing the same reasoning over and over.
Note 2: These comments are in part driven my my habit of buying 'hot hatches' over the years, invariably with ASP of roughly twice the base model.
charts. 
