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Tesla's Price Reduction of Model S and X

buttershrimp

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Jun 17, 2017
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Which previous offered option that helped facilitate production efficiency and a recent price reduction of the Model S and X?

No more Leather Seats $2500 option), No more Ventilated Seats options, No more Alcantara Dash, or headliner, No more solid Roof. Or general gains in production efficiency as a result of eliminating variations?
 
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Yinn

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Nov 15, 2016
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There was a price reduction?

Since the OP is referencing ventilated seats, "recent" is relative.

Which previous offered option that helped facilitate production efficiency and a recent price reduction of the Model S and X?

No more Leather Seats $2500 option), No more Ventilated Seats options, No more Alcantara Dash, or headliner, No more solid Roof. Or general gains in production efficiency as a result of eliminating variations?

There's a couple of components.

1) Simplification. Previously the options were all customizable. When I built mine, I had the ability to select any color interior to match with any color headliner. Interior trim alone had half a dozen options, now there's 3 and it's dictated to match. There were also much more hardware options - speakers, roof, rear facing seats, subzero package, suspension were all different built/hardware configurations. That has an effect on sourcing, time spend building, inventory storage, etc. Now, there's significantly less configurations. Premium upgrade, sunroof, and rear facing seats is it and RFS should be on it's way out soon.

2) Scale. It's hard to scale without simplification. Once simplified, they were able to increase production speed. Overall adoption helped here as well as did the learning curve.

3) This may be unpopular, but it's only a perception of cheaper. Tesla had price increases along the way, as well as bundling of packages, before offering a price reduction. It isn't neccesarily any cheaper at the end of the day.

As an example, I just built a 75D as close to mine as possible. The significant differences between the new build and my original are - I don't have power liftgate. But this new build doesn't have the subzero package - heated rear seats, wipers, mirrors; or the alcantra headliner. The overall price of the new build is $800 more than what I paid. Meanwhile, I also had full customization and control of the combination I wanted.
 
Correction.....once the public believes the S is overpriced.
Tesla sells at what the market gives, hence the CPO pricing most have seen.

Bottom line...when you're ramping, across the fleet, you have to consolidate options to assure satisfaction when you're immature from a car manufacturing perspective (historically).
 

buttershrimp

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Supporting Member
Jun 17, 2017
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Since the OP is referencing ventilated seats, "recent" is relative.



There's a couple of components.

1) Simplification. Previously the options were all customizable. When I built mine, I had the ability to select any color interior to match with any color headliner. Interior trim alone had half a dozen options, now there's 3 and it's dictated to match. There were also much more hardware options - speakers, roof, rear facing seats, subzero package, suspension were all different built/hardware configurations. That has an effect on sourcing, time spend building, inventory storage, etc. Now, there's significantly less configurations. Premium upgrade, sunroof, and rear facing seats is it and RFS should be on it's way out soon.

2) Scale. It's hard to scale without simplification. Once simplified, they were able to increase production speed. Overall adoption helped here as well as did the learning curve.

3) This may be unpopular, but it's only a perception of cheaper. Tesla had price increases along the way, as well as bundling of packages, before offering a price reduction. It isn't neccesarily any cheaper at the end of the day.

As an example, I just built a 75D as close to mine as possible. The significant differences between the new build and my original are - I don't have power liftgate. But this new build doesn't have the subzero package - heated rear seats, wipers, mirrors; or the alcantra headliner. The overall price of the new build is $800 more than what I paid. Meanwhile, I also had full customization and control of the combination I wanted.
Good stuff! All of this makes sense. This post really shows you how much streamlining was truly done. I still find myself wondering which option was causing the biggest headache for tesla as a whole. My guess is the leather seats. The ventilation and creasing and everything else had to create a lot of headaches. I appreciate the fact that I could customize the crap out of my S.... dark headliner with figured ash and tan ventilated seats. It's a beautiful thing. I fear the luxury aspect of Tesla seems to be slowly fading... which is part of the master plan I'm sure. Not my preference but I get it. If we are going full functionality and pragmatism, I'm hoping the eventual refresh will include a built in sunroof shade on all models. Picky yes, but I want it.
 

buttershrimp

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Supporting Member
Jun 17, 2017
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Also, what material is Buttershrimp's new headband??

Glad to see you have been getting yourself back in shape!! :D
The miracle material in the headband is something referred to as "crack cocaine".... I've lost 59 pounds in 2 weeks, and my hair is growing back in. I feel FANTASTIC ALL THE TIME! HAHAHAHAHAHAHAHAHAHA.......

I JUST GOT AN IDEA! NEW AVATAR COMING SOON.
 

Yinn

Active Member
Nov 15, 2016
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Behind you
Only one i know of was around May of last year when they dropped the MSRP of the 75D by about 7K or so...

Although, technically they were already building those same 75D's for 9K less...just with a different badge. So for simplicity - one less badge to manufacturer. And a price increase for all so called 60Ds (aka 75Ds w/ software limitation)
 

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