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What will separate S from 3?

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It's probably also a better idea to test the latest & greatest in a lower volume car. It's better with a 50k car recall then a 500k.
For some features yes, but not for others which are low risk and not "experimental". There will always be cheaper equivalents for AP hardware, displays, cameras, processors, memory, etc. Anyway, the typical trickle down period these days is only 2 years for the most significant features. Some things like seats may never be as good quality.
 
It's a great car, but just too big for me. I will not drive a "luxobarge".

We'll see what happens with alternatives next year, as the auto industry won't stand still when their bread and butter is threatened this much.

Car companies are in a bind, normal development cycles are 4-6 years for new cars and the capacity for battery production is not there and won't be for several years. Worldwide battery production projected to 2020 or so is OK for a few car makers to make about 50,000 long range pure electrics a year, but the volume isn't there to produce anything on the scale of the Model 3.

With such a long lead time on developing new cars, car makers will probably try to electrify existing designs with less than stellar results.

If Tesla pulls off the Model 3 production ramp and it really is as popular as it is now, the car industry will be permanently disrupted and some will be out of business in a decade.

It's probably also a better idea to test the latest & greatest in a lower volume car. It's better with a 50k car recall then a 500k.

Exactly. It both creates a demand for the more expensive car as well as tests new tech on a lower volume car.
 
For some features yes, but not for others which are low risk and not "experimental". There will always be cheaper equivalents for AP hardware, displays, cameras, processors, memory, etc. Anyway, the typical trickle down period these days is only 2 years for the most significant features. Some things like seats may never be as good quality.

True. The important thing is that it's not necessarily the price of the feature that matters. There will be plenty of really expensive options for the Model 3, larger battery, ludicrous.
 
Let's keep in mind he was saying the S and X would get the feature first and it'd be more expensive because they haven't achieved economies of scale yet. He did not say that when features trickle down to the model 3 that they will be *cheaper* from a quality standpoint.

He's saying this just to make Model S and X owners feel good about themselves and their purchase.

Logically we'll see the S and X upgraded again after the Model 3 reveal part two with the new Model 3 features so that those models will have the features first, and the Model 3 will have these features at launch a few months later at a lower price.
 
He's saying this just to make Model S and X owners feel good about themselves and their purchase.
I was dying to see JB's face after Elon said this but was not rewarded on the video feed. JB had already promised the 3 will have all-new tech, so what does that leave ?

Model S is not exactly luxurious, IMHO it's just:
a) bigger
b) available now.

And as far as performance I think it's safe to say that the Tesla engineers will make the fastest possible Model 3 they can, and not limit it for marketing purposes. A smaller car is potentially capable of much more delightful handling (my S70D is a bit of a sledgehammer) and, depending on materials etc. could be a lighter and more suitable platform than S/X for the EV performance crown.

So instead of the all new tech which I'm sure we agree meant the core EV systems (which should always get a redesign now and then to incorporate new ideas, field results eg. warranty claims etc.) maybe we need to think cool toys either related to an EV, or just related to luxury vehicles. And what might these be ?

Autopilot and Dual motor AWD were pleasant and (for me at least) highly compelling additions that were electric car related.

Full autonomous driving is of course the holy grail. I could see that appearing first on S/X or another vehicle entirely.

That unlocks ultra premium entertainment systems including video, gaming, videoconferencing, car as a network, etc.

What else do computers and cars do ?

Tesla seems totally obsessed with automatic and fancier doors, so let's add that. Fancier doors and motorized knobs are an S/X exclusive (lucky them ?).

From there perhaps they'll just keep an eye on the luxury market for other stuff. I tend to be a minimalist but then again it's shocking how quickly we get to "expect" the new things to just be there as standard eg. backup cameras, sensors, Nav, touchscreens, etc.

And maybe, just maybe, one day the S/X will have the exclusive (read: elusive) "add waypoint" and "remove road" Nav features ;)