Elon Musk has sent out an email to Tesla employees that states the current cost of a standard range Model 3 would be around $38,000. This seems to mean that with a 25% margin the car build cost is $30,400. In May, there was an Elon Musk tweet that building 10,000 units per week the cost could go to $28,000. The $28,000 build cost with 25% margin would hit the $35,000 sales price goal.
Elon seems to be asking cost efficiency gains of $2,400 per car to enable selling a base model Model 3 at $35,000.
Ten thousand parts and processes go into the Model 3. This means an average savings of 24 cents per part of process will mean reaching the goal of $35,000 Tesla Model 3 without needing any subsidies.
The lowest price version of the Model 3 that is available now is a $46,000 mid-range model, which gets 260 miles on a single charge. The $35,000 model is expected to get 220 miles on a single charge.
Musk believes Tesla is on target to begin sales of the $35,000 model early in 2019.
Allegedly email from Elon pic.twitter.com/gkl1A5enTV
— Kelvin Yang (@KelvinYang7) November 30, 2018
You agree that the cost could go down to ~$28,000 on average at 10k units/week?
— Fred Lambert (@FredericLambert) May 31, 2018
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These times have proven Tesla should NOT ever follow the GM/Ford model. Which are extremely outdated. No dealerships, not idled factories. You know what? Build 5 more tent assembly lines….then fold them when these cars are no longer selling like hotcakes or move to something that is.
Most people won’t get used to that till it really hits home.
There is no constant but change.
I’m eagerly waiting for the 35k to start selling…so I can buy a used one 2-3 years later. 🙂
<s>
What do you mean things change? Change has never been the status quo before!
We all knew about this….months ago. Things changed.
Old news – June article. Way out of date.
If you quit lying and repeating lies, you’ll have nothing to say.
I expect cost to go down as they go up the learning curve. Also a major part of the cost is the batteries and I expect that to also go down with greater volume.
If they keep cutting enough corners on production, they’ll get there. https://qz.com/1318948/tesla-is-breaking-its-model-3-designs-to-get-cars-out-the-door/