MC3OZ
Active Member
Because the Model Y is a much more premium vehicle, made with more premium components/materials. Guess what Subaru's official sales slogan was when they first appeared in the US market- "Cheap and ugly". I think Tesla could very well manufacture the cheapest to produce vehicle on the US market at some point, but it won't be the Model Y or Cybertruck.
We also need to remember that Tesla make a lot of components in house, seats, glass and lots of other stuff.
I expect the cost to make it is less than the cost to buy, otherwise they would simply buy it, and I think that particularly applies to premium products.
Premium products have premium raw materials, quality design and construction. Quality design and construction isn't cheap, but when it the line working, they can just crank out the components. While premium raw materials will cost a bit more than non-premium, design, construction and fit are a bit part of the premium feel.
Which brings me back to the high $9,000 per car labour cost I seem to remember, There is a very good chance that I mis-remembered, but if I did remember correctly, I assume this also includes making all of the components, including seats, glass, motors, battery pack.
The other issue is why made in Shanghai Model 3/Y is cheaper than a Fremont build. One part is locally sourced components, there are fewer transport miles in a lot of the components, and likely healthy competition between potential local suppliers. But lower wages must be part of it.
We don't have a good guide, but coming back the original point, the Austin/Berlin built Model Y with a structural battery pack will be significantly cheaper than a Fremont build, The Austin/Berlin built Model Y may come in at around the same price as a Shanghai built Model Y.
I don't think it is necessary for Model Y to be the cheapest build in the US at this stage, just cheap enough to provide good margins.