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The Model 3 should be a $60,000 car and I mean that...

The Model 3 should be a $60,000 car and I mean that...

I'm not single, a car expert or a doctor but I play those roles on the Internet.

So I am thoroughly confused at how Tesla can sell the Model 3 at $35,000.

Here are the things that make a product cheaper:

1) Lower cost materials - the Model 3 uses steel, cheaper than aluminum, so that may reduce costs
2) Lower amount of material - a 5 lb product costs less than a 7 lb product to make, so maybe the Model 3 weighs less
3) Easier to assemble - no advantage here, the Model 3 looks to have the same parts and construction as the MS
4) Lower overhead - no advantage here, the Model 3 is assembled with the same labor in the same place as the MS

Things that make a new product more expensive:

1) New design - since the Model 3 isn't a crippled MS, so it needs:
a) New chassis to design, fabricate and test for safety
b) New battery pack to design, test for safety and design software for
c) New sheet metal - nothing ported over from the MS, not even the door handles
2) Expensive materials - the pano roof on the Model 3 that gives headroom has got to be insanely expensive

I shall email Elon and advise the new Model 3 be re-evaluated in the marketplace to a $60,000 car.

Captain_Zap | 03. April 2016

You are missing the advantage of being able to order parts in larger quantities. That is a huge source of savings.

NKYTA | 03. April 2016

Like, um, batteries? :-)

hcwhy | 03. April 2016

If you want to spend $60,000 on your M3 I'm sure it can be arranged.

Tropopause | 03. April 2016

Gigafactory
$/kWh

Tropopause | 03. April 2016

Remember the old phrase, "Batteries not included."?

Mireille and Conan | 03. April 2016

Just be sure you let them know after we've finalized our orders ;)

carlk | 03. April 2016

I don't think Tesla would set that price and make that design if it doesn't believe the car could be made with enough margins. If Honda could make a $25K Accord there is no reason to think Tesla could not make a $35K 3 when the battery cost is down. A lot of design advanges, like performance, space utilization and energy efficiency that M3 has as an EV the Accord does not have. More and more we can see why EV makes sense.

warren_tran | 03. April 2016

^^^ yes, let me config and order mine first. You more than welcome to load up all options you like and pay 60k+.

I still have a family to support.

eye.surgeon | 03. April 2016

It will be a $60k car for many people. Remember when the Model S first came out it was promoted as sub-$50k,

jamriman | 03. April 2016

Yes I can see it costing me 60K after options. Got to save those pennies.

Zakynthos | 03. April 2016

Lol @ roles on the internet. You know nothing and assume everything so I'm not sure how you can be "confused". Without actual car facts, you can't gauge or be educated enough to make any judgement on how exactly they are able to meet that price point.

Haggy | 03. April 2016

If Tesla charged 60K for the base, and 90K with options, then people would buy a base Model S 70 instead.

carlgo | 03. April 2016

The Model 3 will be very profitable, even at the entry level price. It uses conventional construction, made of conventional materials like millions of cars being produced around the world at well below $20K including their exotic motors and transmissions.

The roof is expensive? Maybe not. It is a piece of glass, a robot glues it in. No headliner, no optional moonroof and the complex structure to accommodate it, less paint, no back glass. It might be cheaper.

One electric motor and an entry level battery. Batteries are going to be a lot cheaper.

A minimalistic dash with a display. Big deal.

It can be sped down a modern assembly line and will require even less human labor than about any car made today.

Don't forget that the Superchargers are profit centers. You pay up front for the use, but most people will visit one infrequently.

Want to spend more? Fancy wheels and tires, air suspension, dual motors, a more capable battery, upgraded stereo,
state of the art headlights, mood lighting, sport or other special seats, exotic paint colors, full autonomous driving capability (what is available at the time), ludicrous mode, exotic inner trim...there goes $60K! Or more! But, you get your car sooner.

carlgo | 03. April 2016

Add in the fact that Tesla got to design this car and the assembly line from a clean piece of paper. No old legacy stuff to deal with, and that includes the employees. Its assembly should be the most efficient of any car made, and the construction of an electric car is more simple. Nothing in this design hasn't been done before by Tesal or others, a million times. The software is done, there is a distinct lack of complexity and indeed will be the simplest car made today by anyone at any price. The suspension, not having struts is more complex than average but not unexpected at this performance and price point.

larrytq | 03. April 2016

This guy is a joker. I shall email Elon and suggest 60k. Instant dislike. You rich? Not everyone is. You're not in their marketing team, mind your own business. If this is a joke however, very funny.

After an amazing presentation, to go and change Base price is suicide lol. You can always pay them almost double of it'll make you feel better

Chunky Jr. | 03. April 2016

Here are areas where you can lower cost:
• smaller, so less stuff to buy
• Battery cost is by far the most expensive thing on Model S, so lots of saving there
• tires
• motor, inverter, differential, suspension, brakes, etc
• wiring and electronics
• seats
• interior material and trim
• fewer pieces to assemble
• fewer parts

I'm sure there are many others.

KdotB | 03. April 2016

its thinking like this thats got us paying for water in bottles now

steveg1701 | 03. April 2016

3) this is only one example but look at the door handles. Yes, they are nicely recessed and look pretty much like the ones on MS but if you watch the test drive video you will see that they are not the complex electric handles but rather simple mechanical handles with a unique and cool design!

WHitchings | 03. April 2016

It's got to be the Gigafactory that will drop the battery price of the batteries.

Does anyone actually think Elon will listen to me? Of course I was kidding...

Red Sage ca us | 04. April 2016

Many years ago, a Friend of mine complained that the Acura NSX was overpriced. He preferred the Mitsubishi 3000GT VR-4, which included a lot more technology -- such as all wheel drive, and four wheel steering -- for a much lower price. I explained the problem was that the Mitsubishi was underpriced, that they could have sold that car for more money, but chose not to do so. That isn't Acura's fault.

This is why I continually point out to people that Tesla Motors is NOT a 'luxury' car company. They sell Expensive Performance Economy cars, for a profit, but at bargain prices. They cost a lot. They are fun to drive. They don't burn any gasoline. BUT... They still cost a lot less for what they offer than any of their competitors would be willing to do.

Heck, most of their competitors are not WILLING to build cars like Tesla Motors does at all. Throw a BMW, Mercedes-Benz, or Porsche badge on a Tesla, and the price goes up by a minimum of $100,000 immediately on General Principle. Then, the 'independent franchised dealerships' would tack on a nice, tidy 'finder's fee' on top of that.

Yes, the Tesla Model ☰ is bargain priced with a $35,000 entry fee. Even when fully loaded, with highest performance, extreme tech features, and complete creature comforts it will be a more capable vehicle than many cars in class that cost many thousands of dollars more. That's fine. That is all part of the plan. The car must be compelling, or no one will have a reason to buy it. Bargain pricing just offers one more stage of compulsion.

WHitchings: Yes, I know your OP was Closed Captioned for the Humour Impaired. Still, since there are those that feel that way for real... I decided to answer the query of 'Why Doesn't It Cost More?' seriously, for their sake.

SamO | 01. April 2017

Hey . . . car too expensive? Or too cheap?

Carl Thompson | 01. April 2017

Maybe SamO is bumping old and dead threads to stroke his vanity? So that anyone who looks at the forum's topic list will see a bunch of "SamO" in the "last reply" column?

Whatever the reason bumping old topics with nonsense posts is annoying.

akgolf | 01. April 2017

I see Carl has joined Eagles.

Red Sage ca us | 01. April 2017

Cost. Worth. Price. Those are all different things.