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$35,000 Tesla Model 3 Available Now

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Re: $35,000 Tesla Model 3 Available Now

#102
post #4

Legit: https://www.theverge.com/2019/2/28/18245165/tesla-model-3-pr... New Prices Cheap Interior Standard Range (220mi) - $35k Partial Premium Interior Standard Range Plus (240mi) - $37k Premium Interiors Mid Range (264mi) - $40k Long Range (325mi) - $43k Dual Motor Long Range (310mi) - $47k Dual Motor Performance (310mi) - $58k

So presumably they are hoping many $35k buyers will be tempted by the $37k which presumably has a better margin for Tesla

Re: $35,000 Tesla Model 3 Available Now

#103

"To achieve these prices while remaining financially sustainable, Tesla is shifting sales worldwide to online only. You can now buy a Tesla in North America via your phone in about 1 minute, and that capability will soon be extended worldwide. We are also making it much easier to try out and return a Tesla, so that a test drive prior to purchase isn’t needed. You can now return a car within 7 days or 1,000 miles for…

Does that circumvent some state laws that demand selling cars through dealerships?

Also does Tesla still have Tesla branded "service shop" to do car delivery/return/refund/service?

Re: $35,000 Tesla Model 3 Available Now

#104
post #25

Earlier quoted context omitted.

Yes, it is. For Tesla it means, that they made up to their promise given when introducing the Model 3. Tesla has gotten a lot of critique after the Model 3 deliveries where much later than initially expected and the available versions much more expensive then the promised base price. Offering now a Model 3 for that base price should win them a lot of credibility back. For the consumer it means, that the cheapest Tesl…

Moreover, the 3 now costs less to own than Accords or Camry's, about the same as a Corolla. 1,000,000 of those 3 (combined) were sold in 2018. That's huge.

> Moreover, the 3 now costs less to own than Accords or Camry's

Over what time period? The $35k Tesla is the base model, and a base Accord looks to be $23k. And you can probably negotiate that down a little, which I doubt you can do with Tesla. That price difference buys you a _lot_ of gas.

Re: $35,000 Tesla Model 3 Available Now

#105

It currently costs about $2.50 to manufacture a battery cell. There are 7,700 cells in a standard battery pack. That’s $19,250 in cells before battery pack assembly. I don’t know how they are making money on this. I’m inclined to believe they’re losing money, or someone is somewhere in the line. Maybe they expect those battery costs to decline rapidly in the near future? What do you think?

They manufacture their own batteries in their Gigafactory outside of Reno, NV. They make more Li Ion batteries than any other battery manufacturer. Their batteries cost less than $2.50. https://electrek.co/2018/11/20/tesla-gigafactory-battery-cel...

I can’t easily find a description of how this partnership works, but I think “Panasonic makes batteries in Tesla’s building, and Tesla packs them together for use in their cars” is a better description.

If so, I would expect at least some of that better margin will flow into Panasonic’s pockets (what part, I wouldn’t dare even guess)

Re: $35,000 Tesla Model 3 Available Now

#106
post #100
post #88

Earlier quoted context omitted.

By that standard, they should also incorporate an amortized cost of battery replacement in the price.

The vast majority of people buying a Tesla today will never need to replace the battery. The chemistry used in electric vehicle battery packs these days have much better longevity than what you see in most other lithium-ion cells.

And the warranty is for 8 years.

Re: $35,000 Tesla Model 3 Available Now

#107
post #46

Earlier quoted context omitted.

Absolutely - I made a comment a few years ago around the Model S pricing when they compared it to a E or S class Mercedes. The base price of a given vehicle is $35k, and then I'd spend either $1500/yr on fuel and maintenance o, or $500/yr on fuel and maintenance if it's - for example - electric, on top the of the base price. Spending $1000 less per year does not magically mean the car is now $34k. If anything, the pr…

People like to abuse and overuse the cliche about “drinking the Kool-Aid,” but this right here is a great example of when it is warranted. This feeling you’re having is the result of not having taken “crazy pills” in the first place; it’s the feeling of looking at a cult from the outside. To be clear, I like the Model S and appreciate what Tesla has done to popularize EVs in some circles, but that’s not a ticket to b…

I'm in the "cult" and still have those "feelings" you refer to. This pricing needs to go. It does not line up with Tesla's overall brand and image.

Re: $35,000 Tesla Model 3 Available Now

#108
post #9

Interesting to point out that the $35k is the full price, which goes down when additional discounts are applied. If you get the short range model with no options, it starts out at $35k, then goes down all the way to $24,950 after including the $3,750 Federal tax credit, $2,000 New York EV rebate (clearly it's geolocating by IP address here), and "$4,300 estimated 6 year gas savings". OK, so that last bit is BS, and i…

The gas savings is definitely shady. But including the federal tax credits and destination fee is fair I think. As far as I'm aware, no auto maker includes the destination/docs/handling fee in the MSRP. The Tesla fee amount is comparable to other automakers also (it's on the high side at $1,200; but it's not too different from Toyota's $930 and Honda's $920). Presuming your location due to geolocation is a bit too fa…

It's annoying that they don't make it more clear that's what they are doing, but the gas saving is a real thing. I used to spent $120 a month on gas, that went to $45 a month of electricity, then I got on a Time of Use plan where electricity is cheaper at night and now my monthly "fuel" cost is $15.

Re: $35,000 Tesla Model 3 Available Now

#109
post #103

"To achieve these prices while remaining financially sustainable, Tesla is shifting sales worldwide to online only. You can now buy a Tesla in North America via your phone in about 1 minute, and that capability will soon be extended worldwide. We are also making it much easier to try out and return a Tesla, so that a test drive prior to purchase isn’t needed. You can now return a car within 7 days or 1,000 miles for…

Does that circumvent some state laws that demand selling cars through dealerships? Also does Tesla still have Tesla branded "service shop" to do car delivery/return/refund/service?

"At the same time, we will be increasing our investment in the Tesla service system, with the goal of same-day, if not same-hour service, and with most service done by us coming to you, rather than you coming to us. Moreover, we guarantee service availability anywhere in any countries in which we operate."

Re: $35,000 Tesla Model 3 Available Now

#110
post #9

Interesting to point out that the $35k is the full price, which goes down when additional discounts are applied. If you get the short range model with no options, it starts out at $35k, then goes down all the way to $24,950 after including the $3,750 Federal tax credit, $2,000 New York EV rebate (clearly it's geolocating by IP address here), and "$4,300 estimated 6 year gas savings". OK, so that last bit is BS, and i…

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