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After a rental fully loaded Audi A4 AWD, how is Model 3 so inexpensive?

After a rental fully loaded Audi A4 AWD, how is Model 3 so inexpensive?

I rented a fully loaded A4 Quattro with internet, sunroof etc, via Silver Car. After a week of driving it, I come back to my LR Model 3 RWD. I missed my car.

The sound system is better in the Tesla! Acceleration is always available (100 years of ICE technology - you've literally had your run). Drives so much smoother, and steering is way more pleasant to control.

Considering how expensive battery technology is, and they're both priced at about ~$45K; how is Tesla making any money on this 3? IMO, if Audis were making BEVs, they'd make a "sub par" car than Tesla and sell it at a ridiculous price. oh wait, e-tron?

jimglas | 19 juillet 2019

etron: slower, less safe, shorter range, more expensive
Definitely a tesslakiller

kevin_rf | 19 juillet 2019

You forgot more comfortable and tame acceleration...

CharleyBC | 19 juillet 2019

But the e-tron will appeal to the traditional Audi crowd. And it’s a different format of car, which will also appeal to some folks for whom the Model 3 isn’t a fit. My point is, if it gets someone into an EV, then that’s a good thing.

TeslaTap.com | 19 juillet 2019

With A4 you also the double bonus to breath carcinogenic fueling fumes and pollute the air and land. Consider the A4 doing it's duty for population control!

PhillyGal | 19 juillet 2019

Fewer moving parts and LOTS of manufacturing/parts sourcing efficiencies.
And a more reasonable profit structure.

Audi must profit as must the dealer..

PhillyGal | 19 juillet 2019

But I totally get your point. The M3 is a WAY better car than similarly priced ICE sedans.

vishious911 | 19 juillet 2019

@CharleyBC: Agreed!
But with all their German engineering, they couldn't come up with a better battery than Tesla?

PhillyGal | 19 juillet 2019

Let's not forget that they don't WANT to come up with a *better* battery. Their dealers are their customers, not us. They want to sell whatever dealers want to buy and what do dealers want to buy? Whatever vehicle requires the most parts/service, which makes up about 3/4 of their profits.

Why do you think Americans are addicted to SUVs? Because dealers make more off of tires, etc. so they were marked to us that way.

vishious911 | 19 juillet 2019

@ PhillyGal: Ding ding ding! I totally forgot the dealer markups/profit margins. Would that be at least 10%, if I can pull a number out of my rear end?

PhillyGal | 19 juillet 2019

I don't know the number but I can tell you it varies WILDLY! Our last major ICE negotiation resulted in us getting the car for almost $10k less than they tried to sell it to us for. (Oldest truck in the book: showing us the monthly payment rather than sales price. Idiots.)

So some uninformed customers may make them a 10+ percent profit and others don;t but the dealers make money on parts/service later.

CharleyBC | 19 juillet 2019

“a better battery than Tesla?”

The Model 3 has the best battery in the world right now. Tesla has been betting the proverbial farm on their battery technology, investing in engineering for over a decade. German engineering or not, everyone else is catching up at the moment.

vishious911 | 19 juillet 2019

@PhillyGal: May I ask what ICE car that was? Because $10K discount to be a 10% should be a 100K ICE car ;)

True! And even if we want to put aside the maintenance costs, premium fuel is a joke lol. Umm, it's not a Ferrari, why the F am I supposed to pay 30% more at the pump? It's a $35-40K car lol. Just marginally better than a Toyota Camry.

Bighorn | 19 juillet 2019
vishious911 | 19 juillet 2019

So, we have
* Dealer markups/profits
* Exorbitant CEO salaries/bonuses
* Advertising
* "Brand" cult entry fees

I doubt any R&D because if so, they could make a better engine that runs with the base gasoline. Or a much higher mpg engine. Or build a better battery.

Effopec | 19 juillet 2019

People talk about expensive batteries but forget that an EV motor is much less expensive than an ICE. Also no transmission, exhaust system, fuel pump/tank, etc. And with meeting emissions and fuel economy standards an ICE is getting more and more expensive every year, while battery tech is dropping in price. cost parity is coming soon.

TranzNDance | 19 juillet 2019

Audi could expand the EV market pie by advertising at gas stations and blocking pump stalls.

calvin940 | 19 juillet 2019

Audi is ICE all over and these tactics are not surprising (and honestly expected) from companies that have committed the level of fraud as these have.

hokiegir1 | 19 juillet 2019

@Tranzndance - Like they are blocking superchargers to get Tesla converts?
https://www.teslarati.com/audi-etron-blocks-tesla-superchargers-advertis...

hokiegir1 | 19 juillet 2019

oops -- @Bighorn beat me to it. That's what I get for scanning.

TranzNDance | 19 juillet 2019

My login cookie expired, so several posts separated mine from BH's post.

hokiegir1 | 19 juillet 2019

@Tranzndance -- That normally doesn't stop me from keeping up. :) I just completely scrolled right on past his post.