Important thought of the day to give some insight into Teslas decision.
One can assume Tesla had some small issue with demand for the most expensive model 3s. Say, why did they not release normal long range or even the Lemur to the European/Chinese Markets before directly releasing the SR or offered some other special incentive. This does not make any sense except.... it does in one scenario.
As mentioned in a previous post by me, Tesla is Battery Constrained, still not wanting to make further investment into Ovens that will be useless in about a year with Maxwell. However, they have the capacity to make more cars or at least slowly increase the output, the 7000 or so cap is not so much based on Freemont but batteries. Not doing this would be a cost in itself not increasing ones output potential as they can. If they decide to aim for say 10000 cars per week there they need to. A, increase Freemont output. B, decrease the amount of long range cars.
This is all pretty self evident and seems as something not making perfect business sense, BUT there is one thing people forget. The Powerwall-Powerpack, a product with a demand that cannot be met currently, with a huge backlog, especially Australia. The cost of one is 6700$, most of which is due to batteries. One unit is about 6.5kwh, meaning the difference between the Short Range battery and Long Range equals to 4 Powerwalls. One can then just do some simple maths and take that the difference in selling 1 SR instead of 1 LR equals to about 26000$, that means Tesla will earn A LOT more by going with this strategy, the cost to make one pack is nothing compared with the profit difference offered by the strategy here. Doing this while at the same time, increasing output capability and decreasing risk of demand shortfall is the essence of doing business and being successful. This strategy can also easily be executed while Tesla works to increase its SR output, if that is even the goal. If not the profit potential of the above strategy is still better than the previous strategy.
This is genius but obvious if one takes a step back.
Any thoughts?
