omgwtfbyobbq
Active Member
Only on a fully commoditized/commercialized product. Tesla's products, or any new product, should benefit substantially from increased production by amortizing capital costs and reducing materials/production costs.Typical 3%-5% year over year should be expected.
Look at the Prius. in 2013 dollars, the first generation started at $26,314 for a compact, the second gen was substantially larger, faster, more efficient, and started at $25,040, and the 2010 started at $24,370, with better everything than the 2nd gen.
Every single iteration has been larger, faster, more reliable, and more efficient, for less in 2013 dollars. Tesla will probably see similar cost reductions and increases in performance. If they don't pass those on to the consumer, but other manufacturers do, I think that will hinder their prospects as a major automobile manufacturer.
When the Model S debuted, I was able to get a base 40kWh version for $50k+. While it didn't have as much range and it wasn't as fast as a 60 or 85, it was much more attractive than most other EVs, eg the Leaf, i-Miev, etc..., all of which were ~$20k+.
Now, the i has dropped to ~$13k, and the least expensive S I can get is $61k. Is the S a better car in every way? Sure. But while it was ~$30k better, I don't think it's ~$50k better. By the time the E rolls around, Tesla may not have the same value they currently do compared to other EVs, and I doubt they'll be able to grow as much as they could have.