How do you stay in business selling at a loss? We make up for it with the volume!
Not to mention his exploding rockets, where he is lead designer.
Move production to China. Kandi would be an obvious partner. ;)
Move production to China. Kandi would be an obvious partner. ;)
The bare-bones, low-cost versions of a model are very rare. Instead, they load up dealerships with option packages. It's kind of like basic cable vs. the expensive package that has the channels everyone wants.
Tesla charges for an option that is enabled with a battery swap that allows higher maximum current. They call it "ludicrous mode" (yes, after Spaceballs).
On the Model S, "ludicrous mode" is another $10,000.
Make up for it by volume? No WAY! Make up for it by government handouts and accounting slight of hand.
“Where will Tesla find all those savings?”
Need to mine more fairy dust.
They will make up for losses with taxpayer subsidies. Gotta help fight glo-bull warming, don’t ya know.
Read the latest GAAP financials.
Tesla makes 26% gross profit per car.
Said “hedge fund manager” manages less than $5M.
Elon wipes his $#@ with $5M.
American Co that manufactures completely in the USA.
Americans who root for Tesla’s failure are retards at best.
That's purely old-school business thinking. These days, it's "We'll make up for it with MORE GOVERNMENT SUBSIDIES!
Cut off gubbmint subsidies.
Watch cost explode.
Enron II.
What a bunch of nonsense. This guy has no idea what it actually costs to build the Model 3. He is taking the cost of the Model S and making wild assumptions about how much differences between the Model S and the Model 3 might cost.
A more rational analysis would be bottom up. Figure what the major components cost and go from there. The Model S “cost” is still amortizing R & D and tooling costs. $30K per vehicle ! The actual components and labor cost nowhere near $81K to build each new unit. The 50KWH battery pack in Tesla vehicles is a $12K item. The electric motor is a $4000 item. The high voltage controller is a $3000 item.
Figure the non drive-train components for a Tesla Model 3 is similar to other cars somewhere in the $8K ballpark and add the electric specific components and you have a $27K max cost to build a steel Model 3. R&D costs are not only already paid for by the Model S, but the Model 3 has huge numbers of pre-orders which means that any small additional R&D and tooling costs will be amortized over many more vehicles than they were for the Model S or X.