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Blog Tesla's Pricier Model 3 Already Converting Owners of Mass Market Cars

Discussion in 'Electric Vehicles' started by TMC Staff, Aug 2, 2018.

  1. TMC Staff

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    Tesla noted on its earnings call Wednesday that new customers willing to shell out $50,000 for the Model 3 aren’t swapping out a luxury car in the same price range, instead they’re trading in cars that cost half as much. Chief Executive Elon Musk said the top five cars traded for a Model 3 are...
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  2. SkagitDoug

    SkagitDoug Member

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    So, rather than producing a pickup, why would Tesla not offer a compact car with 300+ mile range?
     
  3. bettegruben

    bettegruben Member

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  4. bettegruben

    bettegruben Member

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    Why would they if the 3 is selling so well in that same market? I would love to also have a pickup and get rid of the old Dodge we have to pull our boat and make runs to the dump.
     
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  5. Pepetideo

    Pepetideo New Member

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    Because Tesla is a global car company and pickups only atract the US market and stands to reason they will only work on pickups when they have extra slack in production capacity
     
  6. Rsdavis9

    Rsdavis9 Member

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    Me too!
    4runner to pull boat and pull trailer for dump and move lots of stuff.
     
  7. jboy210

    jboy210 Supporting Member

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    Great news. Tesla has tapped into not only the market of people tired of another C class Mercedes or BMW 3 series, but also younger buyers moving up from the car they drove to work at their first job.

    This weekend I was talking with a group of mid-20s about one of the group's members Model 3. Virtually every one wanted to move up to the Model 3 from their Hondas or Toyota hybrid. All of them have 4 year degrees from a great school and a couple had masters. They all felt the price was fair. And all agreed when one person said, "Why would you want to own a BMW 3 when you could own a Tesla Model 3?"
     
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  8. John M Glennie

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    A Tesla pickup truck, will bury Ford, who recently has cut back on sedan manufacturing in favour of the 150, Mustang and a couple of SUVs.
     
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  9. scottm

    scottm Active Member

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    As this tidal shift happens... many questions come to mind, here's some in my head:

    What's going to happen with all the ICE trade-ins? Do you think there'll become a class divide between EV and ICE, as the "haves" and "have nots"... whereby using gasoline will be a sign of (relative) poverty? Those poor polluting people stuck on the fossil juice.

    Are gas prices going to fall as more people leave ICE behind for good, or will consumption just shift as more people find old gas cars now to be within reach and become drivers, adding more clog to the road?

    Speaking of roads, for the most part it's a tax on gasoline at the pump that pays for infrastructure improvements. What happens if that source dries up? With the generous tax credits for EV in some states be replaced by EV tax on car purchases or license plate registrations to pay for infrastructure?
     
  10. bmzl

    bmzl Member

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    That still doesn't make the M3 a "mass market" car. It costs $54,000 to buy a M3 equipped as well as a $27,000 Accord.
     
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  11. scottm

    scottm Active Member

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    I stopped by a random house for garage sale and talked to the owner, who spotted my model S.

    I showed him the car.

    He was seriously thinking of buying a Corvette.... dream car glitter in his eyes midlife crisis kind of thing... I could tell. Up until that moment.

    His wife came over.. we talked about how well this EV has been working for me, and I basically don't have any ongoing fuel costs. Jaws dropped.

    Told him we're getting a model 3 next. And that car will kick the pants off a Corvette. Similar money.

    I seriously think I popped his ICE bubble and welcomed him to the next century of driving. Corvette probably not in the cards any more.

    A win! And possibly another order for 3 performance. And the next day Tesla announces referrals apply to 3P, I need to get back there with a referral number :)
     
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  12. Dr. J

    Dr. J Member

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    If I understand you correctly, my guess is because it would cannibalize sales of the ~$50K Model 3. Also my guess: this is the slot the Chinese imports will fill eventually (post-trade war).
     
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  13. SkagitDoug

    SkagitDoug Member

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    Both your thoughts make sense, Dr. J, thanks!
     
  14. spectrum1337

    spectrum1337 New Member

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    Are you sure about that, especially factoring full cost of ownership?

    About $1k/year in maintenance and fuel savings. $7.5k tax rebate. Resale value is also higher and if you charge to 50-80% each night (only charge full on Thursday nights for weekend prep), its very likely the battery will last as long as the car.

    That's at least $36.k right there.

    Does an Accord have build in audio controls for so much? Can I pre cool it? Glass roof? Huge screen? 0-60 in 5.5 - 6 seconds? 4 USB chargers?
     
    • Like x 1
  15. bmzl

    bmzl Member

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    Nonetheless, $54,000 is not mass market. Moreover, I don't know where you get your $36k or your resale value; but according to Consumer Reports, the Accord is a much better car.
     
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  16. kugasman

    kugasman Member

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    Because compact cars traditionally lose money. The profit margins are just too small. Traditional manufacturers can produce compact cars because they have so many other models to make up for it. I remember reading about some GM compact car program that they did in the 1980's and they knew that they would LOSE money over the entire life cycle of the car. This is why Ford and FCA are basically getting out of the car business.
     
  17. drPearl

    drPearl Member

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    As soon to be owner of M3, I'm confused re your statement re charging only to 50-80%, fully charging just once weekly to make battery last longer. Is that recommended by Tesla? Haven't seen/heard of this as yet.
     
  18. SO_S90D

    SO_S90D Member

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    Michigan charges a higher registration fee to EV owners to cover the road maintenance. And there are no state incentives to buy an EV.
     
  19. SO_S90D

    SO_S90D Member

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    Even though it’s only a US market, it still is a big one. And since pickups have heavy pollution, I’m all for getting the ICE pickups off the road.
     
  20. SO_S90D

    SO_S90D Member

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    It makes it a mass market if the mass market is trading up. But that does remain to be seen.
     

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