Does Tesla even need to create a new model vehicle to release a $25,000 car?

intimidator

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Just running some numbers and if:
US Model 3 RWD (50Kwh battery) that now sells for $40,390
30% profit margin brings the cost to manufacture to $28,273
EV Manufacturer incentives of $35 per KWh reduces the cost by $1,750 (if I am not mistaken)
This brings cost to manufacture it down to $26,523.

I am thinking if Tesla creates a front Giga Casting an some other cost cutting refinements (like they have done for the Model Y) they may be able to have a compelling $25-30K vehicle and make a nice profit with just the existing Model 3.

Throw in the Consumer rebate of $7500 (If you qualify for it) and consumers could see a $18000-$25000 Tesla EV.

Or maybe not. :)

BTW: I am guessing right now the Model Y is cheaper to manufacture than the Model 3 for Tesla.
Fantasy.

Inflation is going to continue to drive prices up.
And Tesla is not able to produce the Cybertruck, Roadster or Semi yet, let alone begin design on a less expensive model 3.

I think they stay the course for now. They have to bring out the Cybertruck, and that will take their excess brain power and time. Maybe they will look at a "cheaper" Model 3 in 2025. They could decide to make one with a small battery, which should drop the price a few thousand.
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intimidator

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What forces will create more inflation? How much inflation have we had over the last three months? Month to month?

-Crissa
At the moment, according to data released in mid-September by the Bureau of Labor Statistics, grocery prices jumped 13.5%. While the ANNUALIZED inflation is running at about 8%.

Now, our favorite administration has tried to spin that if inflation in July was 8%, and inflation in August was 8%, then the first derivative is 0! AKA bull****

If your favorite vehicle costs $100,000, it will be $108,000 soon.
 


charliemagpie

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We should move away from the $25,000. It is dated. Maybe we should call it the Budget car.

Maybe the 'uncompromised' Model 3 would have evolved into the budget car.

Rather than pass on the savings garnered by higher volumes and better efficiencies, we have chosen to raise the price AND pocket the extra net profit.

Strategically the budget car has thus far not been needed to meet production volumes.
 

Crissa

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At the moment, according to data released in mid-September by the Bureau of Labor Statistics, grocery prices jumped 13.5%. While the ANNUALIZED inflation is running at about 8%.

Now, our favorite administration has tried to spin that if inflation in July was 8%, and inflation in August was 8%, then the first derivative is 0! AKA bull****

If your favorite vehicle costs $100,000, it will be $108,000 soon.
Annualized. Not month to month.

That means there's not increasing inflation.

Groceries go up and down. They do that. That's mostly not inflation.

-Crissa
 

intimidator

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Annualized. Not month to month.

That means there's not increasing inflation.

Groceries go up and down. They do that. That's mostly not inflation.

-Crissa
Sorry, we are currently having massive inflation.
Who cares if the 2nd derivative is not INCREASING. We have inflation.
If you raise the volume on your radio from 2 to 3 to 4 to 5 all the way to 8, and stop increasing the volume, you are still at 8 - and it is constantly loud.

In 2019 inflation was 1.8%.
The annual inflation rate for the United States is 8.3% for the 12 months ended August 2022, according to the US Dept of Labor. If it stays there, prices will continue to rise.
The Cybertruck will be $100,000 by the time it eventually comes out.
 

Crissa

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Sorry, we are currently having massive inflation.
Those words do not mean what you think they do.

Bad inflation was 1980. And even then, it wasn't 'massive'.

In 2019 inflation was 1.8%.
...Yes. That's bad, GIR. Inflation is supposed to be between 2 and 4%. We were on the edge of a recession. GDP growth was terrible in 2019.

-Crissa
 


JBee

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Those words do not mean what you think they do.

Bad inflation was 1980. And even then, it wasn't 'massive'.


...Yes. That's bad, GIR. Inflation is supposed to be between 2 and 4%. We were on the edge of a recession. GDP growth was terrible in 2019.

-Crissa
1980 and now not massive?

Maybe in comparison to Germany paying reparations after WW1 and artificially allowing the currency to fall so it was cheaper to pay.

Germany printed the numbers on the bill on the left, so they could run the same bill through the printing press to add zeros, because of the amount of inflation they had. That way they would save the cost of paper.

USA is doing that to "the world" atm, after forcing a series of countries over the edge already. This is ongoing corporate enslavement on a global scale by militarizing fiat currency and using it as a weapon. This is primarily to counter the rise of brics and co who are looking at dethroning USD as default global currency.
 
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SwampNut

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During 2019-2020 we printed about 1/3 of all the fake paper dollars ever created out of thin air in all of history. That's right, fiat currency went up astronomically. What do you think that does to the base value of it?

Tesla Cybertruck Does Tesla even need to create a new model vehicle to release a $25,000 car? 1664290747845
 

intimidator

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Those words do not mean what you think they do.

Bad inflation was 1980. And even then, it wasn't 'massive'.


...Yes. That's bad, GIR. Inflation is supposed to be between 2 and 4%. We were on the edge of a recession. GDP growth was terrible in 2019.

-Crissa
In the United States 8.3% is huge inflation compared to recent history.
For example, what was inflation in 2010? 1.64%
Even if you peg inflation between 2-3% a year, 8.3% is 3 to 4 times that.

Today 1000 workers at the San Francisco airport went on strike - for higher wages.
Higher wages ripple through the economy and will cause many goods and services pricing to go up. Including the price of most things related to the cost of an EV.

I reserved a CyberTruck in November 2019. I naively thought I might get a Tri-Motor for $69,000+.

Now, partly due to inflation, and Tesla consistently raising prices on their other models since 2019, a would expect to pay $89,000. Although I don't think Tesla knows for sure which model(s) will be available at launch. It might be the Quad motor at $99,000. Which is probably a fair priced based on the current EV pickup market.
 

JBee

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Fedex is apparently looking at cutting jobs... running out of things to deliver it seems.

More fiat = less products for the masses as currency funnels to the top without making an impact on those that need it most, let alone those that actually make "something".

If they're true to MMT there will be a tax hike next as the "solution". It will just make it worse instead. That's what happens if ideas don't match the mechanics of reality and people believe theres always going to be enough supply if you throw enough fiat currency at it. There is a "supply problem"....yeah there is, because somebody has to make it before anyone can get it "supplied" to them.

We closing in on the point of the man in the desert, with a suitcase of money, but no water around that he can buy.
 

Crissa

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During 2019-2020 we printed about 1/3 of all the fake paper dollars ever created out of thin air in all of history. That's right, fiat currency went up astronomically. What do you think that does to the base value of it?

1664290747845.png
I think it shows you don't know how GDP is calculated or the variables that impact the money supply. There's something called 'velocity' which is the number of times a dollar changes hands and something else called a multiplier not to mention that savings are deducted from the money supply...

For example, what was inflation in 2010? 1.64%
Again, that's bad, GIR.

And what was the last year that Tesla couldn't sell every car they could make and then some? So where's the impact of inflation?

So I probably shouldn't interact with the topic further. Please take a macroeconomics course that gets beyond the basic microeconomic concepts of supply and demand.

-Crissa
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