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$35,000 Tesla Model 3 Available Now

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Re: $35,000 Tesla Model 3 Available Now

#21
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?

Re: $35,000 Tesla Model 3 Available Now

#22
post #7

It's so shady that their advertised price includes some hypothetical "potential gas savings", and the actual price is behind a tiny "learn more" link.

The real price is at the bottom of the page without having to click through, but yes, it's still really shady. No other car OEM does this.

How many car OEMs push misleading lease prices by increasing upfront cash to make the monthly payment seem lower?

Only $LOW/Month*

* After large amount upfront.

Re: $35,000 Tesla Model 3 Available Now

#23

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?

$2.50 at what volume? Are you saying that's Tesla's cost, or someone else's?

Re: $35,000 Tesla Model 3 Available Now

#25
post #3

So this is the big news?

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 Tesla is now available for 35k vs. 42k vor the mid-range until today. Thats 7k less and make Tesla cars available to a larger audience. While I don't like how Tesla represents the prices with savings, the effective price gets close or below 30k, which is huge.

For electric cars overall it is also important. Tesla is the largest manufacturer of electric cars and the waiting times for the Model 3 are way lower than the competition. So this marks quite some progress in the availability of affordable electric cars.

Re: $35,000 Tesla Model 3 Available Now

#26

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?

Maybe its cheaper to make the batteries in China?

Re: $35,000 Tesla Model 3 Available Now

#27
Does this have something to do with the decision of the owners of Tesla's convertible bonds if to get back cash or shares?

https://www.businessinsider.com/tesla-to-pay-march-convertib...

I mean that maybe if the bond owners see that Tesla is (really?) about to deliver the 35k model they'll opt less for cash and more for stocks? (therefore Tesla would have less problems with liquidity)

Re: $35,000 Tesla Model 3 Available Now

#28
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

Page says $26,950 for Standard Range for me, with an * * Prices above include potential incentives and gas savings. Learn More Weird.

They've been doing that for a long time, trying to explain in TCO terms instead of sticker price. It can be somewhat misleading at times but I get the rationale.

Re: $35,000 Tesla Model 3 Available Now

#29
post #7

It's so shady that their advertised price includes some hypothetical "potential gas savings", and the actual price is behind a tiny "learn more" link.

Yeah, that's really bad. I also think they shouldn't make you click to check each model to see what the range is. I should, at a glance, know that it's the $43,000 "long range" model that has as much range as my Toyota.

Toyota probably makes you click through to find 0-60 time.

Re: $35,000 Tesla Model 3 Available Now

#30
Tesla had to do this. They've filled the order backlog of customers who were willing to pay more than $35K. They still have many on the list who are only willing to pay the original $35K. So it's sell at $35K, cut production, or park the unsold cars in a lot. Happens all the time in automotive.

Big question is, does Tesla make a profit at that price?

$8K more for 50% more battery. Or $24K for an entire large battery. Big markup there.

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