HaulingAss
Well-known member
- Joined
- Oct 3, 2020
- Threads
- 11
- Messages
- 4,824
- Reaction score
- 10,131
- Location
- Washington State
- Vehicles
- 2010 F-150, 2018 Model 3 P, FS DM Cybertruck
The Cybertruck will be very affordable, just like previous Tesla, it will take time.I hope. So much for all that "we have to make the Cybertruck affordable" talk by Elon.
Tesla has opted to pay off the roughly $2 billion (maybe a bit more) in development costs sooner by charging more for the first production runs, while their production volumes are still low. As they ramp to higher and higher volumes, and figure out ways to make them quicker and with less labor, they will start dropping the price.
By paying off development and tooling costs sooner, Tesla will later be able to drop prices lower, and sell in higher volumes, than they would otherwise be able to. Lower prices result in a larger addressable market. It surprised me that Tesla took this route as I thought they would amortize the development costs over 6-8 years of production, rather than charge a lot upfront.
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