Tesla Model 3 Average Selling Price Hits $60,000

SEP 8 2018 BY MARK KANE 228

The average selling price of the Tesla Model 3 continues its upward trend.

According to Teslike, the average selling price of the Tesla Model 3 is increasing in the third quarter compared to the second quarter and now stands at $60,262, up from our last report on this topic.

In the second quarter, it was $55,424 ($4,838 less) while in the first quarter the figure was $55,925 ($4,337 less) because of two reasons.

The first is the price increase in early August, while the second is a growing ratio of dual-motor all-wheel drive Model 3 compared to rear-wheel drive Model 3s.

Higher average prices combined with much higher volume should translate into stronger financial results – we are approaching the end of the quarter that could become the first profitable one, according to Tesla targets.

So far in Q3, still only 35% of Model 3 are dual-motor versions (10% are Performance) so there is room for an even higher average price before the cheaper Short Range version enters the market.

Tesla Model 3 base prices

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228 Comments on "Tesla Model 3 Average Selling Price Hits $60,000"

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John Ray

At this price point, the demand for this car will be limited. That’s two LEAFs or Bolts and two $7500 tax credits. Probably explains Tesla’s inventory problem and why there is no longer a reservation queue.

TM3x2 Chris

Yeah, that’s why sales are dropping and Tesla will go out of business soon.

John Ray

Past performance is no guarantee of future results.

TM3x2 Chris

Tell it to the hedge fund managers.

Pushmi-Pullyu

“Past performance is no guarantee of future results.”

Yeah, that’s why employers don’t bother to ask for the work history of people applying for jobs, and it’s why colleges don’t ask what your high school grade point average was.

Oh, wait…

God/Bacardi

One of the most overused cliches…If people believe this I highly recommend they marry a pornstar…They know what they’re doing in bed so should make a great wife and mother to your children, right?

Scott Franco

Yes, no matter how many times i see this it is still hilarious. “Tesla sales are going to be limited because of…” (price, lack of government incentive, reliability, etc). They are selling as many as they can make! Where is the dropoff in sales???

Alistair

They only have the rest of the world’s order to fulfill also…. 😉

Mikael

The reservation queue is still enormous.

God/Bacardi

Why buy a Ferrari when you could buy 17 Chevy Sparks instead?

TM3x2 Chris

hehe, I could be a Spark King in my neighborhood.

John Ray

Extrapolation to the absurd is a sign of a weak argument.

God/Bacardi

Or, weak points to begin gain clever responses…

Robert Weekley

John, look at this way: Ever Optimistic Elon was incredibly Shocked, by the Number of reservations, recorded just by the time the Model 3’s shown at the Reveal Rolled on stage, (~115,000), and we heard him later say he expected maybe 50,000-60,000!

Remember, Model S had just 12,000 Reservations, at the Time of its first Delivery, and Model X had 20,000, by the same first delivery point!

For both those vehicles, everone speaking in the Negative suggested after those Reservations were filled, sales would dry up! Still not happening!

TM3x2 Chris

The truth that there is no reservation queue? Where do you get your information?

John Ray

The fact that you can order a car right now and have it in 2-4 weeks. Source: Tesla Motors Club website and Tesla dot com.

This is all due to the currently available configurations and the fact that deliveries are only happening in the U.S. and Canada. The reservation queue is still massive, but includes people waiting on currently unavailable configurations, as well as people all over the world.

jeffhre

Tell that to my friends who are waiting in London.

They will be happy to know that one configuration of the Model 3, will be available in only four weeks, in the Western United States!!!

John Dawson

Just spoke to our local Tesla rep today and she is quoting 2020 for right hand drive UK model 3s

arne-nl

You’re forgetting me here in Europe eagerly awaiting the moment that I can order.

Viking79

Yet they sell nearly 20000 of these a month, can’t handle the load in the delivery centers. The Model 3 production in 6 weeks is similar to the annual production of the Bolt EV.

There is no reservation queue because they are in mass production right now.

Nix

There very much still is a reservation queue.

There is still a reservation queue for everybody outside the United States, regardless of model.
There is still a reservation queue for all SR’s.
There is still a reservation queue for LR’s without PUP.

The only cars you can get without needing a reservation are the LR’s with PUP and “P” cars, and then only in the North American market.

With that said, it is still meaningless, as the vast majority of cars around the world are sold with no reservation system at all. So any standard applied to Tesla based on reservations is a mindless double standard, where Tesla and only Tesla magically has to have reservations or it somehow proves there is no demand.

Anozie

Very good point you just made, Nix

Get Real

And he made it based on facts rather then the weak propaganda, outright distortions and questionable agenda’s of the long time anti-Tesla posters.

Mikael

And it is not even open for all North American markets, only 2 out of 23 countries.

Todd

You are either willfully ignorant or have no idea how Tesla sells cars. The average price is up because people ARE BUYING higher priced cars. Teslas a built to order. If there weren’t demand at higher prices, the average price would go down (and it will next year when the SR comes out).

John Ray

Go read Electrek. Drop by the factory and pick out a car. Not exactly built to order. Sounds more like a dealership.

Nix

Why are you trying to extrapolate a one-day invitation only event as if it it also applied to every customer for all the other 364 days of the year like a traditional dealership?

There is your “Extrapolation to the absurd” you were talking about earlier!!!

You would have been better off simply saying “My bad, I was wrong” than to double down and prove yourself doubly wrong.

CPO

I would go for willfully ignorant.

Shaun

Yeah rising prices are typically a sign of low demand, that’s pretty much Econ 101… hahahahahaha! Oh wait, you were being serious?

S3XY

I would never settle for an ugly leaf or bolt. Nor would spend a penny I found on the street on one.

F150 Brian

Its a good car and not overpriced.
But context is important considering they advertised it as affordable.
According to the US Census Bureau, the model 3 average price is more than the US median family income.
So how would you fine folks define affordable for a car relative to family income? 1/2? 1/3?
Also, how much would an American family have to make to pay enough tax to get the full $7500 EV credit?

gbr

tesla has never advertised

Seven Electrics

Do you count this website?

John Ray

Good one

Get Real

Yeah, good one attacking the credibility of the best EV website on the net.

All you two are doing is further degrading your own credibility which is already junk status.

John Ray

I stand by my comment.

TM3x2 Chris

That would be a very loose interpretation of the term “advertisement”.

F150 Brian

wrong! Yet another tesla fan who can grasp the truth.
The tesla website uses affordable and Model 3 in the same sentence.
That IS advertising.

u_serious?

I guess anyone who has a website they sell things on makes their site “advertisement” even when you have to search for the actual URL?………that’s just plain stupid but then again it’s you.

David

Clamp your vacuous smart ass rationalizations. The issue is simple, Tesla does not advertise and may never need to. Apart from anything else why advertise when 1) you can not meet demand and 2) When every person who owns a Tesla realize that any other option is pointless- and thus each owner is a walking, driving unambiguous salesmen for the company. Right now Tesla is recruiting salesman exponentially at the starting rate of 320,000 owners a year. ( using projected 3rd quarter numbers)
Now look at a traditional car advert- and try and find anything intelligent in any ad. They have nothing to say any more. We know that all such cars will soon be pointless, obsolete. Like the Nokia, just before the IPhone, like bookshops shortly before Amazon. May be car dealerships can morph into pub food or coffee shops with game quizzes

Pushmi-Pullyu

“Tesla does not advertise” is certainly an overstatement. Tesla does not do paid mass advertising, but it certainly does do advertising. “Reveal” publicity events are advertising. Running a contest for fan-made video commercials is advertising. Promoting personal recommendations from customers by running contests with free cars as prizes, is advertising. Tesla has official promotional videos on YouTube, too. Heck, Elon tweeting is often advertising.

And yes, Tesla’s website is also advertising.

Unplugged

Look. The guy is proud of owning a F150. That about says everything.

Viking79

Tesla does referral based advertising, similar to many online retailers.

Chris O

The context of course as made clear by Tesla many times is that Tesla is making the high margin models first so it can generate the cashflow it needs to stay in business and will move on to lower margin models once it has production cost under control and cash position secured. Since Model 3 production cost at high production numbers has been calculated at $28K even the $35K entry level that should see a $40K+ ASP should have plenty of margin BTW.

Will

$28k is for the LR. SR will be much cheaper with cheaper interior and battery

David

Virtually everything is above the median income- because the US has a staggering number of people at, below or one major expense away from poverty. I wonder why.

Fool Cells

poverty in America means you only own one car

Counterpoint

Think of it this way: 10% of the American public is 33 million people, and it’s reasonable to think the top 10% in income would be able to easily afford a Tesla. So let’s now guess that 5-10% of these top 10% income earners want a Tesla, which seems reasonable to me. That’s 1.67-3.3 million people. If you figure people in this income bracket tend to replace their car every 6-7 years, that’s a market of between 230,000-550,000 cars per year. Tesla’s goal is to make 10,000 Model 3s a week, which would be 520,000 a year. By my estimates above, that number of cars fits within market expectations.

Now when they release the $35k base version, more than 10% are going to be able afford it. Let’s say the top 20% in income can afford a $35,000 electric car and a similar percentage would want one and keep it a similar amount of time. That would double estimates and indicate there’s a consistent market for over a million Tesla vehicles per year. So using these estimates, it would seem that Model 3 sales after they clear reservations should remain fairly consistent.

Stan1

In addition, the vast majority of car shoppers buy used cars. New car buyers as a whole are relatively affluent and can “afford” higher priced vehicles than they have been buying historically. They just have to value them differently than in the past. (Car ads try to influence the value calculation by using scantily clad models, driving empty roadways, etc.). Vehicle depreciation changes, changes in luxury levels, higher performance, higher convenience, ethical considerations, patriotism, etc. can easily influence vehicle value purchase decisions and change the buying dynamic for sets of buyers. Trade ins indicate that many buyers are paying more for plug-ins.

Roy_H

I guess I continue to be surprised at how many rich people are out there. I seems there is a large enough population that can afford to spend this much on a car without straining their budget. A large number of these people own several cars, many of them have a Model S or X. I read on these forums where one person said they bought one for their son and now they own 3 Model 3s. I wonder how long it will take to saturate this upper income market.

ffbj

Think of it as if every single ICE vehicle as being obsolete. Then ask yourself when the market for evs will be saturated.
Not for many years I would think. Of course that’s only 40% or so of the American market since most sales are trucks and suv’s. But then you have worldwide demand, which is also huge.
So no, there is no problem with demand.

John Ray

Their is a problem with demand at this price point. $60,000+ cars are not the solution.

TM3x2 Chris

How do you explain the continued demand for the Model S and X?

John Ray

Honestly, I can’t. It is astonishing to me that there are that many people willing/able to purchase these cars month after month. But, then again, I have never understood people willing to pay $1,000 for the latest smart phone.

Todd

You just stumbled upon your root problem. Not everyone is like you, but you think they should be.

John Ray

It’s exactly this kind of thinking that lead to the last recession. Guess I am just more risk averse than most.

david cary

So the worldwide meltdown of the financial system had to do with demand for high tech products and a willingness to pay for them?

Remind me how many Tesla’s were sold in 2007 and how many $1000 smart phones were sold that year.

Ah the “thinking”. That people spend money. True that – excess debt was an issue but that was mostly real estate. Nothing remarkable is ever accomplished by the risk averse.

John Ray

Hahaha. We’re not talking about investing in a company or starting a business. This is using leverage or cash to purchase a depreciating asset for which substitute’s exist. Nice try though.

u_serious?

if by depreciating asset you mean a car, then name a car in the range of $37k to $80k that does not depreciate?

every car in that price range purchase is a depreciating asset but for some reason you don’t think or know that…….idiot.

Elemental

EVs depreciate less than gas cars (research it). Some of the earlier models like the Leaf are experiencing higher than normal depreciation, but that is because the bar has been getting set higher at an accelerated pace. What Tesla is doing is making these earlier models, along with virtually every gas car, obsolete. Talk about some depreciation.

Will

No but it’s was no risk mortgage to people that can’t afford them and banks needing to be bail out or fail

Nix

Actually, at the time the banks needed bailed out, the foreclosure rate was entirely within the standard cyclical range of foreclosure highs. It wasn’t until after the credit crisis triggered by bank failures that foreclosure rates went through the roof. What really caused the problem is that Wall Street had borrowed against (leveraged) the CDO’s for those loans by ratios as high as 30:1. Then they took that borrowed money and made leveraged stock purchases. They double leveraged.

So for every $100K dollar mortgage foreclosed, they had to pay back 3 million dollars in cash they borrowed. But to do that, that had to sell the 3 million dollars worth of stocks they bought. But they leveraged those stock purchases often 5:1 and bought 15 million dollars in stocks. But the stock market crashed, and they could only sell those 15 million dollars in stocks for 10 million. That was putting the banks in the hole 5 million dollars for every 100K mortgage that failed. This was what literally broke the banks, and that was not the fault of borrowers.

Robert Weekley

Easy, Nix, very few people realize banks invent money with every loan! Most still think their savings was loaned out!

They were never taught how to read a Banks Annual Report, either! Their excuse? “Not Good at Math!”

And that line in that old song “Money Calls Are Back!”, goes over most heads!

Ziv
I agree with a lot of what you said, Nix, but I think you are inverting the cause and effect of the mortgage crisis and the bank bailout. The US foreclosure rate went from a relatively normal 0.58% in 2006 to 1.03 in 2007 which is when the foreclosure boom started. It peaked over a 3 years period at 1.84% in 2008 (3.5 times normal rate of foreclosure), 2.21% in 2009 and at 2.23% 2010, before dropping to 1.45% in 2011 and continuing to drop to 0.51% in 2017. The Great Recession is usually thought of as starting in December of 2007 but the real trough in the Dow didn’t start until May of 2008. The Bank Bailout Bill didn’t pass until October of 2008, long after the foreclosures had started pounding on middle America. The banks contributed to their own demise by leveraging their investments in mixed tranches of conventionally financed mortgages, with the good mortgages mixed in with NINJA mortgages, in which the loan officer required No Income proof, No Jobs or Assets needed. Those mortgages were in effect signature mortgages. One other fact to add to this litany of disaster is that the mortgage default disaster/foreclosure wave… Read more »
Nix
Ziv — good details, but you under-estimate when corporations first started having problems, and first started the feedback loop. Because all that started long before you think it did. The largest bailout receivers were the private/public entities Freddie/Fannie. They were actually suffering such heavy leveraged losses that on 2/2007 they had to drastically cut their mortgage purchases, setting this whole slow train wreck in motion. You are correct that at this point (end of 06/start of 07) that foreclosure rates were still around the .6% range, very much within normal bounds. This one action by Freddie/Fannie designed to stop the massive bleeding they were suffering set off a feedback loop that locked people out of financing/refi and quickly CAUSED the ramp-up of foreclosures to just escalate. This was the start of the downhill crash, with New Century Financial Corporation filing for bankruptcy just 2 months later in 4/2007. By that time, the banking side was in full out crisis, but they were keeping a strict code of silence around it, so they could continue to sell stuff like the infamous Timberwolf “Sh!tty deal”. All through that summer and fall, BEFORE the end of 2007 when foreclosure rates had finally broke… Read more »
Nix

Here is a good source showing that the banking industry had successfully weathered normal cyclical mortgage foreclosure rates above 1% in the mid- 1980’s, then again in the late- 1990’s.

By mid-2008 when we hit that 1.3% normal cyclical high of the mid -80s, the banks were in full crisis this time due to their leveraging that I covered before. At this point, if Wall Street and the banks had not mishandled and over leveraged their mortgage business, they would have survived the same as they survived the mid 80’s when the foreclosure rate was around the same.

Instead, this normal cyclical high in foreclosures had developed into a full blown global crisis, where Privately operated Freddie/Fannie had to be bailed out, Lehman was bankrupt, Wall Street was getting bailouts, Banks around the world were failing, and the entire credit system was broken. Everything past mid 2008 was just the after affects of the Giant already falling from the Cloud. It was already dead.

https://allcountries.org/uscensus/814_mortgage_delinquency_and_foreclosure_rates.html

Will

Cars are debt too. You still need to pay the loan off

Todd

Why is buying a car inherently risky? While I agree with your overall sentiment, you are coming to conclusions that you can’t possibly know anything about. I bought a 3, am I a risk taker? Not really. I drove my last car for 13 years and saved up in the interim, and paid half down on my Tesla. I’m in no financial risk over it. I’m not saying that I’m average either, just that you can’t really know that much about people buying anything. If you don’t find the value, don’t buy it. I didn’t see enough value in EAP for the price, so I didn’t buy that. But I don’t assume that an average sticker price 10k higher than mine is a sign of the apocalypse either.

John Ray

This is more of a concern in the aggregate. Of course individual situations vary. We’re getting a little off topic. Someone down below mentioned delaying retirement to buy a Tesla. Dunno, seems an odd choice.

David Cary

An odd choice but should be good for the economy as a whole. So there is that.
Have you driven a Tesla and do you enjoy driving? Working a little longer for something that brings you happiness seems a reasonable choice.

Nix

“This is more of a concern in the aggregate.”

Actually, Tesla buyers are in the aggregate higher income, older, higher credit rating, and higher educated than typical car buyers. So you are manufacturing a fake “Concern”, like any other Concern Troll who is always oh so Concerned!, so very Concerned!!

Or have you forgotten how you and others have attacked Tesla buyers as “elites” when that exact same data was first released? Funny how when you see something as useful for an attack, that you suddenly forget about it when you Concern Troll as if Tesla buyers were going to lead to a recession… LOL!!

Get Real

I would agree that buying a gas vehicle is going to be risky going forward as we start rapidly transitioning to much cheaper TCO of EVs.

John Ray

Wow. 13+ downvotes for being fiscally conservative and risk averse. Wonder how many downvotes I can get if I say I don’t approve of recreational drug use.

Nix

It isn’t that you are risk adverse, it is that you simply are wrong about what caused the Bush Crash. Your understanding of the crisis is shallow and trite and focuses on the consumers when the real problem was the acts of the banks. And don’t take my word for it, take the word of all the banks who admitted fault and paid huge penalties and settlements.

Why do you think it is YOUR place to approve or disapprove of other people’s LEGAL and LAWFUL behavior in what they choose to consume?

Focus on your own darn faults, and spend less time judging others, or don’t whine about minor things like getting thumbs down.

peter904

JR.”I have never understood people willing to pay $1,000 for the latest smart phone.” What’s to understand, $20 a month added to your monthly carrier’s bill. Rocket science!?

Shaun

I’m sorry to hear about your poverty. Sounds like you need to work harder.

John Ray

Hahaha. No, not in poverty, but thanks for the concern.

Robert Weekley

“Poor” is an attitude, while “Broke” is a condition!

Conditions change (Great Depression), but Attitudes take much longer to change, if ever, in a lifespan!

Your concerns seem to indicate you have no idea how people can purchase expensive items, which reminds me of a time selling Advertising, when a Businessman might say the product (Ads) were “Expensive”, when what they really were saying, was it “Was Expensive – For Them!”

It’s just natural to see others through your own life experience filters, even if irrelevant to them!

To me, Starbucks sells “Expensive” Coffees, when Compared to Tim Hortons, or McDonald’s Coffees, “especially” if compared to even make it yourself Instant Coffee, if you took the cost difference and invested it, even in a Tax Free Savings Account! (I saw a YouTube Video on that topic, by the way, so not my original thought!)

Nix

Smart phones are replacing computers for many people, meaning that money that would have gone to buying a phone and a computer is now being budgeted by many just to a phone.

Matthew Kennel

Oddly enough, demand for cars keeps on happening month after month after month as people’s older vehicles wear out or they tire of them, and as they earn more money. This has been happening since perhaps 1920. Is this going to stop?

In 7 years there will be a bunch of off-lease Model 3’s that people of lesser means will buy as the wealthier buy the next model 4 coupe, SUV or whatever.

Will

Yeah but cars were always brought in 4-5 years cycle since that was how long banks were willing to lend. Now I’m seeing banks lending up 10 yrs with 0% ApR . Creating a Auto Bubble

u_serious?

good lord old man this is the direction the markets have been going for years. wake up or crawl back under your rock.

Robert Weekley

When just one Canadian City: Toronto, is listed in having 180,000 “Millionaires”, not counting Real Estate Asset Values, it might make more sense, especially if you are struggling at $50,000 or less per year, personally.

Elemental

Keep in mind that EVs cost less to operate and I think there are many who are also willing to put down a bit more for what they feel is a good cause. A lot of people probably don’t care though and just want the best they can get. Tesla vehicles provide that too.

Chris O

..and the fact that Tesla will be delivering 50-60K Model 3s this quarter, LOL.

Trackdaze

Demand for those is roughly 2000 per month.

Robert Weekley

Right! In your State, maybe!
😌

peter904

JR. Tesla sells premium priced vehicles, just like BMW, Jaguar, Lexus, Land Rover, Maserati, Ferrari, Lamborghini. Granted in the grand scheme of things there is more demand for lower priced cars and trucks – the same can be said of comparing a $35K vs. $20K vehicle.

What will be interesting to me is not how BMW, MB, Audi-Porsche compete with Tesla for the premium vehicle market but how Chevy, VW, Nissan, Toyota, Honda, Kia, Hyundai, Ford, FCA will compete with China when they start exporting $25K BEVs with 200 miles of range.

u_serious?

clearly your head has been up your ass too damn long. $60000 cars are selling. have you not seen the scorecard or are you just that dumb?

Elemental

In that case buy one now for $49K or wait till next year for the $35K version. The $60K is AVERAGE sale price. This is awesome, because it means higher profit margins for Tesla’s mission. Perhaps you knew that though and were just trolling.

John Ray

That was my point, but I get 15+ downvotes. Go figure.

TM3x2 Chris

Oops, I gave you another thumbs down just out of habit.

Chris O

Fair warning, trolls have never been all that popular around here, better get used to it and don’t even think it will remain at just 15.

John Ray

Trust me, I know. I’ve been here a long time and long before this thumbs up/thumbs down system came about.

I could post that Musk smoking weed on camera showed poor judgement and would get dozens of downvotes even though any rational person can that it was dumb thing to have done. The cult is not rational.

John

Or they’d likely vote you down because they don’t find it that big of a deal that Musk took a drag off a cigarette. The same folks that listened to the informative 2.5 hour long podcast and got more out of it than Elon simply smoked weed.

Will

It’s weed , not a ciggy

u_serious?

technically it was part tobacco and part weed. 🙂

Elemental

Not to be “blunt”, but that is what they are sometimes called 😉

John

I mentioned the word ‘weed.’ You actually took time to type that? (I actually took the time to type a response??)

Chris O

People around here accept that Musk is a unique individual who no doubt has his quirks that are currently being preyed upon in an all out anti-Tesla FUD campaign in which FUD bombers like yourself also appear to play a role. It’s perfectly rational for people to be protective of an individual who could have great value for the planet and to do what it takes to discourage the FUD plugging rats.

Mark.ca

Nothing to do with cults, dumbo….most of us including myself voted this into law. LEGAL so get over yourself.

Will

Yeah at homes but not in recreational space or pubic channels. I don’t want my kids watching that. Yeah kids let’s watch Elon give a great interview about science and tech, and weed comes out

Gasbag

“Yeah at homes but not in recreational space or pubic channels. ”

Toking via pubic channels??? That’s some kinky stuff you are watching.

Elemental

Just tell them it was tobacco and all will be well right? They’ll probably still try it at some point though, like every kid I’ve ever known, especially when their parents told them not to. It’s a lot less likely to kill you though and much less of an issue than alcohol. But I don’t think this is really the issue is it? Keep digging for dirt on Musk.. Maybe you’ll find something. Or just stop and do something that actually matters.

Bill Howland

You said you didn’t want kids – since you said you were speaking for all gay people. Or is there more than one Will here?

u_serious?

yeah obumma hit the joint too. just google it. a lot of rational people voted for him into office. wtf is your point?
clinton hit it too.

Stan1

“Yeah obumma hit the joint too. just google it. a lot of rational people voted for him into office. wtf is
your point?
clinton hit it too.”

Why would you only point to Democrats? W. smoked weed as did some of our founding fathers: https://thefreshtoast.com/cannabis/these-11-u-s-presidents-smoked-marijuana/

Pushmi-Pullyu

You certainly should get downvotes for obsessing over the 3 seconds of a late-night interview in which the guest took a single puff off a doobie that the host offered him, instead of talking about any of the many interesting in-depth subjects which were discussed over the course of that interview.

It’s like you’re looking at the Mona Lisa for the first time and all you have to say is that there’s a crack in the frame.

Viking79

The downvotes are because you said there was a problem with demand at that price point, but nearly 20k sales a month would say otherwise. Granted US might not sustain that forever, but world wide is fine. The cheaper Model 3 coming next year will more than fill demand for the more expensive models should it taper off a bit as reservations are filled.

Also remember that many people thought they wouldn’t be able to buy a Model 3 this year, yet hear we are with 3 months left and they can have a Model 3 Long Range RWD in 4 weeks without a reservation. This will increase demand of people who didn’t reserve in order to get a tax credit.

Cypress

Yeah, I seriously considered pushing the order button when I saw 4 weeks for the LR+PUP, Knowing I would be able to qualify for the $7500 tax rebate. But I’m really wanting the SR+AWD, and kinda want to see what the non-PUP interior is like.

John

It’s because you’ve conditioned folks to pretty much dismiss your comments. It’s happens here quite a bit, folks make a valid point laced between constant negativity, and those same folks are surprised when their point is lost in the skewed bias.

Shaun

It shouldn’t surprise you. The sheer amount of large luxury SUVs on the road with similar purchase prices to this should give you a clue just how much people spend on cars.

Cypress

Yeah average pickup cost is $45k and lots of people spend $50k-$65k.

God/Bacardi

Complied stats aren’t always easy to find but Ford did make a statement that the average transaction price for their F150 in May 2018 was $35,800 which was higher than May 2017…

https://www.marketwatch.com/story/ford-crushes-estimates-on-18-year-high-in-f-150-sales-2018-06-01

Nix

Not that hard to find. Cypress is correct at $45K, with the spread being between 40K to 50K for the top truck makers.

http://cars.typepad.com/.a/6a00d83451b3c669e201bb09dfc229970d-800wi

That MarketWatch article is poorly written. The original Ford press release shows that $35,800 number is for Retail sales across ALL their vehicles (excluding fleet sales). It is not specific to Trucks:

https://media.ford.com/content/dam/fordmedia/North%20America/US/2018/06/01/18-may-sales.pdf

Will

BF spend $52k fully loaded Ford Explorer Sport with $4k negative plus rebates and whatever they took off the hood($)

u_serious?

he couldn’t buy a clue even if it came in a can.

Prsnep

> I seems there is a large enough population that can afford to spend this much on a car without straining their budget.

I am willing to be that there are a large number of people who ARE straining their budget simply because owning a Tesla is considered cool.

Mark.ca

Some may get it for the brand but I suspect most get it because there is no other alternative for a true luxury ICE replacement (the Jag is not here yet).
I also don’t get why so many here don’t understand that CA income is simply higher than in most other states. $60k for median family income? How? Are they both working at McD?

Michael Schmitt

Wonder why you consider Model 3 luxury. Saw my first one parked on the street here in Chicago’s Little Italy. Interior was interesting in its minimalism, but the exterior was a bit plain jane. I’m planning on buying a used Volt for maybe $8K when they start appearing.

Pushmi-Pullyu

Have you tried a test drive? People who have, often say that driving a Tesla car is actually a pleasure, in a way that driving no other type of car is. You can’t tell that just by looking at it!

That’s why many people are willing to spend more to buy a Tesla car than any other car they’ve ever owned.

Doggydogworld

I test drove an S 100D and a RWD 3. Both were nice but I like the 3 much better. The S feels big and heavy on back roads. I also rode in a P100D which launches like an amusement park ride. I can see why money burners would buy that and show it off to their friends.

I also really like the 3’s interior. It feels like the future. I don’t see 50k of value there, but if people bought based on value the new car market would look A LOT different!

Robert Weekley

Tesla may well be the “Replacement” for Lexus, Lincon, Acura, Cadillac, Infinity, MB, Audi, and BMW! And more!

Apparently also for Prius and Honda Drivers, too; based on the “Top 5 Trade Ins” that was shared!

Ken P

I am ordered for Nov delivery red M3D, car budget is not just the payment the whole 5 years calculation.

Murrysville EV

“Rich guy” = someone with a dollar more than you.

Cecil T

Or someone more in debt than you.

Will

Yelp and I still see us commoners and middle class driving ice cars and SUV

Warren

We we keep cutting their taxes, it could be a very long time.

u_serious?

it will be saturated jan 1 2019 when rebates phase out…….lol

God/Bacardi

I’d imagine there’s no easy to way to track how many add AP after delivery…Tesla should deliver not just the 3, but every vehicle with a 90 day AP trial to get folks hooked…Allow them to pay the at delivery AP price to add it as long as they’re within the trial period…

Cypress

I would rather that build it without the hardware and drop the price by a few thousand.

Doggydogworld

It’d drop the price less than a thousand.

Get Real

Which is why it is so smart for Tesla to put the hardware into every car.

The scale drops the cost of parts and manufacturing and when they get to Level 3-4 these cars will increase in value and Tesla will make tons of money off OTA upgrading people’s cars to AP.

Not to mention the fact that as more and more potential customers realize that buying a Tesla is future proofing your ride Tesla will reap the benefit of that important marketing/selling advantages.

Will

Elon just said the hardware wasn’t ready FSD. Just said it in the conference call last time

Elemental

Yeah, a computer swap, with their own in house lower cost AI chip. You can bet they’ll start putting them in the cars off the line ASAP as well, decreasing the number of swaps needed. My guess is those old computers could be used for interesting things as well, so might be worth something.

Robert Weekley

On that, it seems to me, the NVidia Cores were able to process something like 10% or less, “Frames Per Second”, of incoming Video, than Tesla’s New, In House Developed, Custom Chip, which is Hot Swappable, and CPU Pin Equal!

Elon also stated, all Existing Model 3’s shipped before the New Chip was Available, would get the Chip Swapped at a Single Service Call, at No Charge!

Basically, the NVidia Chip does the Job, but as I Remember, their early DEMO Video showed more Slow, back road type driving, not Freeway level Examples. I know NVidia has also done an upgraded Chip, as well, but Tesla’s Chip is designed specifically to run the Software they Write, more tightly!

Robert Weekley

I also Feel, that the current 8 Cameras, could have additional ones added, for better Cross Traffic, Intersection and Driveway Traffic Spotting, like at the 4 corners of the cars, facing 90° to the Direction of Vehicle Travel.

Nix

Also the hardware is working in shadow mode and collecting very valuable date for Tesla’s neural net. Putting hardware into every car is cheaper then doing what other car makers are doing, which is to build entire cars and hire people to drive them around.

Besides, every car now has a future upsell opportunity to add self-driving feature even a decade from now. Deferred income stream they can tap.

Get Real

Yeah, I forgot to put that in my list earlier–thanks Nix.

That alone makes it worth it for Tesla to put it in every car.

Will

Like XM Radio or something

Michael Schmitt

XM Radio=LowFi.

scottydoesntknow

Source is a survey on TM3OC with about 5000 respondents.

Seven Electrics

Tesla could eke out a small profit thIs quarter, especially if they continue to defer accounts payable and they sell ZEV credits, but production should be higher than the current 3K a week.

John Ray

Is it 3,000 a week? I thought it was up to 5,000+ per week. Maybe 3,000 per week = actual demand.

u_serious?

did you bother looking up how many they delivered or do you just post here totally ignorant?

that was rhetorical, no need to answer.

stop spreading fake news with fake intelligence.

Robert Weekley

Seriously, Keep Up!
… As I said above: ”
It was reported as the Short “Labor Day” Week, only got 3,100 Model 3’s made; that Specific Week, Only!”

Robert Weekley

It was reported as the Short “Labor Day” Week, only got 3,100 Model 3’s made; that Specific Week, Only!

arne-nl

3k a week? Hmm, last time I looked at the Bloomberg tracker, it was above 4.5 k/ week.

But then again, I might be making the mistake of only taking reputable sources into consideration…

Viking79

Selected misinformation, it was a bit over 3k per week over the holiday weekend.

Dave

That is a 4d week.

Get Real

Selected disinformation done deliberately by a long-time anti-Tesla poster who also maintains the lie that he owns 2 Teslas himself despite his thousands of posts on InsideEvs bashing every aspect of the cars and company!

Nix

Yes, this is the identical intentional misinformation as when the 4th of July holiday weekend numbers were reported.

There are typically 44-48 full work weeks in any given year for automobile assembly lines, including typical downtime for line changes and holidays and Christmas-New Years shutdowns, etc. But it only becomes news when Tesla does the unimaginable and dares doing the exact same thing other car makers do, and halt their lines from time to time.

Doggydogworld

“especially if they continue to defer accounts payable ”

AP has no effect on profit and loss.

Robert Weekley

Really? $5,000 to $8,000 more or less AP revenue per car is “Irrelevant”, in the Balance Sheet? Go Figure!
😌

Doggydogworld

AP = accounts payable
I thought it was obvious from the context. Sorry.

BillT

This isn’t too surprising given the percentage of AWD cars in the mix. AWD + any color but black + EAP + delivery pulls ASPs north for sure. What really impresses me is how many cars they are moving at this price. It will be interesting to see what the sustainable demand is. As for the model 3 being “affordable”, I don’t see that in the cards given any color but black + delivery will be $37.5K minimum. The Leaf is what I would call affordable given there is $6K – $9K cash (depending on trim) on the hood right now and that is before any tax incentives.

Todd

It’s all relative. It’s more affordable than S/X. Hopefully the downward trend continues in the next generation (probably not the Y, as it seems more like it’s the X analog to the 3).

Dan F.

Tesla could (my guess is that they will) decide to remain a premium only car maker. Audi, MB, BMW, etc. make small cars but no non-premium cars. Tesla certainly has the cachet to stay with premium only vehicles and it is certainly easier to make money doing that. If you make economy cars you risk devaluing your premium line (a Lexus called a Toyota would sell for less). Economy cars are a tough way to make money even if you make them in Mexico; just ask Ford.

Elemental

Good points. Korea and China are already coming out with very low cost, yet favorable, EVs. Seems like they are more apt to fill the low cost niche and likely drastically undercut gas vehicles soon. Tesla may serve the mission best by producing the cream of the crop so to speak, at least for now. I can imagine all EV prices will come down though, as battery tech improves. EVs should theoretically be much cheaper to manufacture than gas vehicles, when that happens.

Robert Weekley
Even in Tesla’s “Secret Master Plan” posts, and all Model 3 Related info I have Read, I never heard the words that it competed with a “Cheap” ICE, Or what people seem to call An “Affordable” Car, like Chevy Cruise, or Toyota Corolla! It was, since it was called the “Model 3”, to My Recollection, competing against the “BMW 3-SERIES”, which, unless a person already considers those cars as “Affordable”, the Model 3 never was “Pitched” as “Affordable”, but more particularly – “More Affordable”, which means – Less than the Model S, by a Decent Step, which it Actually IS! So, also, since the Model 3, Base Model, (Still to come), is about 50% of the Cost of a Base Model S, and as to income suitable for buying THAT Car, an early Roadster Owner from Ottawa, in buying the First Model S (Single Motor, No AP), said that ones income “Should Be” about (CAD$) $300,000 per year, so about $200,000 per year USD$! As the Model 3 is about half the cost then, that would suggest that about an Annual Income of $150,000 Canadian, or about $100,000 US, is about Right, for this cars purchase, fitting into ones “Budget”,… Read more »
Doggydogworld

It was to be called the Model E, to spell SEXY, but Ford trademarked Model E so they used a backward E.

michael

Except range and design, are there any parameter where Model 3 acutally beat a Leaf? I know the guru concept. Brands like Apple and Tesla can get more for equal products. But i really dont see any rational argument for the Model 3. With those prices it is completely different price than a Leaf and Bolt.

drpawansharma

People buying it beg to differ

John Ray

No, but that can be said for most cars today. Once upon a time the differences were more pronounced. Today even cheap econoboxes offer reliability and luxury features.

ranss12

1: acceleration
2: availability of high speed charging stations along interstate highway system
3: miles per kWh
4: over-the-air updates
5: EAP

William

The #”5: EAP” is by far the coolest feature!

The coolness factor of “Elon’s Always Puffing”, makes the Model 3, if I Musk put it so Bluntly, way Dope!

/S

BillT

Since we just bought a 2018 Leaf and will be getting a Model 3 soon I agree that from a purely rational perspective at way under half the net prices (Leaf SL Vs model 3 LR RWD premium) the Leaf is the sensible choice, even if one takes road trips. $30K will pay for a lot of airline tickets or ICE rental cars or for that matter Model 3 rentals on Turo. There was not rational reason whatsoever for me to replace my 2014 Volt with a model 3 but after renting one on Turo I came to the conclusion I was willing to delay my retirement a little to have one.

Troy

the INTEREST on $30k — $150/mo — will cover all the non-LEAF trips I make this year.

Well, I’m heading out on a 150 mile (one-way) trip to the coast tomorrow so wish me luck!

There’s 8 evgo chargers between me and my destination and I only need 1 to be safe so it shouldn’t be a problem. ‘course, being a LEAF I gotta go 55mph and not 75 like the Tesla cool kids get to do.

(This is largely why I upgraded to the 2018 from the 2015, as there was zero safety margin in a 24kWh car on this 150 mile trip that I like to take every few months)

u_serious?

good luck and enjoy your ev!

Dan F.

That’s 6%. Are you investing in below investment grade (aka junk) bonds or a mutual fund of the same. There is a lot of risk to your capital in these. Absent that risk you are looking at a substantially lower yield and also it will be taxable.

Robert Weekley
A 150 mile trip, at 55 Mph, is about a 3 Hour run. I do an “After Work” 2 hours out & 2 hours back run, a few times per year. I don’t count it as a “Road Trip”, at all, unless I am Sleeping away from home! So that means anywhere from about 8 hours, plus, typically, on the road, before shutting it dow fir the day. In May, I had one leg, starting out after work, of 5 Hours on the Road, but in July/August, those Florida Trips were 12 Hour run days x 2, plus the last leg of 8 Hours! Even, Toronto to Windsor, Ontario, is within “Day Trips” Territory, about 4 hours each way, at most. My Longest 1 day drive lately, was coming home from Massanutten, VA, without a Sleep on the way back to Toronto. A trip that is doable in a Model 3, just fine! (I could have stayed overnight in Erie, PA, but wanted to just finish the trip!) So, each persons needs, or “Normal” drives may vary, for themself, as well as when Compared to others! A coworker drove his Model S, 90D, to California and back, over our Summer… Read more »
Todd

Long term battery life. Historically Nissan can’t make a battery that keeps its capacity.

William

Figure on 2018 Leaf 40 kWh battery capacity fade/loss approaching 10% degradation EVery 3-3.5 years.

The Nissan battery warranty (8 yr./ 100k mi.) covers loss below 70% capacity, and protects Leaf owners if additional degradation is EVident.

This is only in keeping within their average 12k miles per year drive cycle, and being exposed to a regional above normal ambient heat index, and excessive DC fast charging usage.

Troy

my 2015 Leaf was at 85% SOH after 32 months, but I live in a very hot hot climate plus QCd it 600+ times LOL.

Treating my 2018 a little better, trying to L1 it more and QC it less . . .

BillT

We were well aware of that when we bought our 2018 Leaf for my wife given we keep cars 10 years. In her case, 100 miles of range provides a ton of safety margin (on a really busy day she drives 40 miles) and the car is warranted to have that for 8 years. At high twenties for a loaded SL before $10K in federal and state rebates I think the Leaf makes a really good in town car, especially for people who like hatchbacks and sitting up a bit higher than sedans.

Viking79

Performance
Range (not a second car)
Number of Superchargers on major roadways
OTA Updates (took Honda 4 months and a service visit to fix minor bug with car range calculation)
AP/FSD (best potential for non commercial use)
Style

Get Real

Actually, I believe that style is a top 2 or 3 attribute of the Model 3 when compared to the competition.
It has been proven repeatedly that sexy sells when it comes to cars.

Also, the fact that OTA updates and every car having AP hardware makes buying a Tesla basically future proofing your ride.

Troy

I see a Model 3 every day at work now and it’s OK.

I like the flat front but the back is a disaster, plus 4 doors don’t do it for me at all.

Overall the car is a bit awkward, like how Mazda f-ed up the RX-8.

Now, it’s marginally more stylely than the 2018 Leaf, which is almost indistinguishable from every other 5-door toddler hauler.

Get Real

Well, hundreds of thousands of people disagree with you.

Robert Weekley

“4 doors don’t do it for me at all.”, sure, if you are Single, or travel Alone, a lot, why More doors? On the otherhand, why have to move the Front seats out of the way, for people to get in the back seats?

2 Doors – 2 Seats? Great!
2 Doors – 4 Seats? Why?
Are your back seat passengers trying to Escape?

antrik

In addition to the points others already brought up, there is of course the huge difference in charging speed.

I’m even more surprised though that nobody has brought up handling. This seems to be the thing most people like best about the car. Musk claims that there are few things you can buy that bring you so much joy… Which might seem like a big claim, except that virtually everyone reviewing the car is raving about how much fun it is to drive.

Sure, that’s not a strictly rational argument — but then again, when were car buying decisions ever strictly rational? Even deciding to own a car at all is not a strictly rational decision in many cases. (Using public transport, where available, is usually cheaper; and not having to drive a car allows for better use of time…)

But depending on how exactly you define “rational”, it could be argued that spending some extra on something that brings joy every single day is indeed a rational decision 🙂

Troy

yep wealth at its most basic is ‘being well’ — i.e. having all your needs and wants satisfied. Nobody needs a crisp ride, but I certainly want it!

The net expense on my 2018 Leaf after all the checks come is ~$16,000 so theoretically for ~$70,000 apparently I could have my Leaf AND a 2019 Toyota Supra.

Might have to settle for a Miata RF tho unless other mfrs get off the bucket and finally make a great sport couple again.

antrik

Oh, another important point: safety. Model S and X are the safest cars on the roads; and though not officially confirmed yet, Model 3 is likely to join them.

peter904
Michael. Apples vs. oranges. Yes they are both fruit and quite tasty. Why buy BMW 3 Series when you can buy a Camry, Accord, Altima? Why buy an F Type or Boxster when you can buy a Miata? ” Brands like Apple and Tesla can get more for equal products.” What makes you think they are equal products? I have been driving a Tesla for nearly six years, sure I could have bought a similar priced BMW, MB, Porsche, Audi, Jaguar… What I discovered was that Tesla has an unmatched commitment to their products and their customer. Thanks to free OTA software upgrades my early Model S is better today than the day it was delivered. I can’t say that about any other car I have ever owned. Tesla is totally committed to BEVs. if Nissan was dedicated and committed to BEVs why did they launch the Leaf and then ignore it for something like 7 years. It took GM’s Bolt to ‘force’ Nissan to up their game! Last question. Have you driven a Leaf and a Model 3? People buy various cars in every price range for many reasons and it is often about a dealer saying yes (trade… Read more »
Bryan
Michael, I have a reservation for the Model 3, 2 in fact. I really needed a new car and looked at the Bolt and Leaf. I am going to retire some day soon 2 maybe 3 years down the road. I am looking for a car that I can retire with and hopefully drive a lot around the country. I couldn’t do that with the Leaf in any way. I can’t do that with the Bolt in the near future either. No charging infrastructure, not enough range and even if the infrastructure was around the charge rate is too low on these cars. I have been driving a ’15 Leaf to and from work. The lease was coming up last week and I wanted to get the Model 3. I can’t afford it right now. Maybe in a few weeks when my down payment will be bigger. But what you are missing I think is that unless you are looking for a commute car neither the Leaf nor the Bolt is a good car. Neither can replace a full featured ICE car like the Model 3 car can. It doesn’t matter the price the cars aren’t in the same market.… Read more »
Get Real

Actually, you wouldn’t want to do that with the Bolt unless you don’t mind 1 1/2 hr DCFC, but not so fast recharge times every 2 hrs.

Trust me I know since I have one of the first Bolts made and have over 30,000 miles on it.

If I am going over 200 miles for a day trip I take my Volt instead because of the hideously slow DCFC of the Bolt.

Will

Sell it to me Real

Get Real

I can’t because I’m leasing it and will be replacing it with a…you guessed it—a Model 3!

Kiem Bui

We have a 2018 leaf and a 2017 Model S. I understand these cars are in different classes but the Tesla ecosystem is unmatched. Both have lane assist and i must say the leaf’s lane assist is not bad, but the Tesla Autopilot keeps getting better and better. The leaf is a great commuter car, but I would never try to go anywhere long distance. I take the ModelS anywhere without worry of where to “refuel”. So the model 3, especially the base model will be a deal even without the incentives. Also, this is just the tip of the iceberg of ev adoption. Most people still don’t understand EV.

Tom

Infinitely better nav. Amazing controls. Lifetime software updates. A well considered and thoughtful interior with nice storage. Autopilot, summon. (I can eat a granola bar and not cause an accident trying to unwrap the damn thing). AWD I think? Raw performance. The superchargers enable it to be our primary road trip vehicle as a family of four. Gorgeous glass ceiling.

Matthew Kennel

If you want to be ‘rational’, buy a 10 year old Honda civic and learn how to fix it.

Dan F.

Comparing a current model 3 to a current Leaf is like comparing a Camry to a 5 series BMW. I’d by the Camry (except for its overdone styling) but I’d want the BMW. These vehicles are not cross shopped even though they both get you where you are going. Now the upcoming SR Model 3 and 60 kwh Leaf are more comparable and more a matter of taste and may well be cross shopped.

Brian

Safety.

Robert Weekley

The Base Model 3, at US $35,000 (+ Shipping), will compete handily, with the coming 2019, 60 kWh Leaf, which has been reported as having an “Expected” price of about $37,495-ish! Range between the 2 cars will be +/- 5 miles Rating, from what we currently know!

Then comes Road Trip Times! Which would YOU Choose, to take a Week or Two long Road Trip in, as to Charging?

Sure, the Leaf might be a “Hatchback”, and the Model 3 is not, but it still has a longer “Trunk Space”, than my 2010 Kia Soul! But speed of charging, might be a “Thing”, as well as easy navigation to Superchargers and Destination Chargers!

On the Other Hand, Nissan, VW, and others, might boost investment in charging infrastructure, and improve it!

Not saying Not to buy the new Leaf, as some need to be sold, and your interest in multi day road trips may not be a thing for you, and same for me, as I would rather own my self a nice, fast, private plane! But, short of that….!

BillT

The upcoming base Model 3 will still be $37.5K or more delivered in any color but black. Leaf and Bolt will easily be $10K less net after cash on the hood because I think GM and Nissan are smart enough to know they can’t get model 3 money for those cars. And this is before taking into account that Tesla will have one hand tied behind its back when it loses tax incentives ahead of the competition. I think there is a big market to replace 1 car in multi-car households with an affordable (<$30K) BEV at Nissan and Chevy would be smart to target that.

Chris O

So Tesla will be delivering 50-60K Model 3’s this quarter at a staggering $60K ASP? Looks like a lot of money is coming Tesla’s way this quarter.

BillT

Mine is one of them but it will pull that ASAP down .001% or so.

Get Real

And yet still the usual suspects here will gnash their teeth and try and spin it that Tesla is losing money and going bankwupt!

Chris O

Of course, the FUD must go on!

Doggydogworld

Tesla’s guided $51k average cost of goods, so a lot of the money coming in will go right back out. Q3 will be much, much better than Q1/Q2, though. Tesla should also sell more S/X in Q3 than Q1/Q2, which will help.

In the near term they have to scramble around the China tariffs. In the mid-term they have to improve their manufacturing so they can reduce that build cost. They’re burning through $49k+ customers quickly. Q4 will get a boost from the looming tax credit phaseout, still there’s a chance we’ll see LR w/o PUP in November/December.

Brian

They’re pretty much selling only in one country for the rest of the year in order to maximize rebates before they are cut in half. Any lower demand next year will be replaced with international sales.

Your Dad

Almost 35k

peter904

Compare apples to apples. What is the average price of a loaded BMW 3 Series, including M3?

Dave

Exactly. Many people bought BMW3, or equiv ICE, for approximately the same price. Now they are buying a 3 instead. BUT also Civic buyers. Top 5 tradeins for 3s included honda Civics. So people are upgrading to the 3.

Will

That’s Cali for you

Bunny

Those numbers are impressive. You’d think with it now being that high they’d be able to run three weeks production at 60k then run a week at the token 35k
for the first day 35k crowd, At least it’d be an attempt to keep all of your customers happy.

Tech01x

They have a long order queue for the AWD and Performance versions. Plus, they have convertible debt to have to pay off and get the street to understand that they aren’t going out of business this month or next or the next.
I would expect first SR versions be either late Q4 or early Q1, but those likely still are pretty loaded.

Nix

That is illogical. That is probably the most expensive way they could ever possibly build the SR. Which is the exact opposite of what has to happen.

Will

No others companies put the base on the line as well with higher trim

Pushmi-Pullyu

Tesla will too, once the cost of production comes down far enough that they can do it profitably.

Larger auto makers have many auto assembly plants and dozens of models of cars in production at any time. Tesla has exactly one auto assembly plant, and for the first time this year will have a car model selling in the top 20.

Expecting Tesla to run its business just like much larger auto makers is pretty silly.

Leafowner

When you take into account all of the $$ you save in not buying gas and basically no maintenance — longer term the Model 3 is a pretty good deal.

Timothy Hughbanks

American family incomes span a distribution. The Models S & X were within the price range of the top 5%, maybe 10% for those willing who are big spenders (as a fraction of their income). The Model 3’s being sold now are going to the top 20% (or, again, big spenders lower down the distribution). 20% of American households is still a big market, ~ 30 million households. After demand there levels off, the economy scale in making batteries and other parts of the cars will make the lower-end Model 3s more profitable for Tesla to sell. Meanwhile, Tesla is learning a lot about how to manufacture cars for the mass market.

This is just an extension of Musk’s long term strategy: make an attractive “cool” electric car to get the relatively wealthy to offset his huge capital costs. Most of the ICE manufacturers (I’m thinking GM, i.e., the Bolt and the Volt) thought hippie-greenies actually kind of like ‘sacrificing’ to get an environmentally better car. They never looked past people buying the Prius.

Brian

$1,400,000,000 in one month of sales?

Jason

I don’t think the average person can really get their head around how much money there is in the auto industry. Tesla is a drop in the ocean, and as you and I point out, it is $bil’s in just that one “small” company. I think any sane person would be happy if their company had $bil turn over. If they haven’t figured out their profit margin from $1.4bil per month then they do deserve to go out of business.
And if you look at just one measure, the LR battery upgrade people are paying $9k for, then I think the indicator is there is a hell of a lot of profit built into the Model 3. LR battery according to Tesla comments should add $3,200 to the build cost (reportedly $160/kWh at the pack level for +20kWh that’s $3,200) yet people are happily paying $9k? That’s just crazy!

Brian

It’s a mistake to think you only get a larger battery for $9k. You also get vatsly better perfomance. 0-60 acceleration drops 1.5 sec, top speed is higher and it’s likely that braking and handling are upgraded from the Short Range Model 3 as well. The LR Model 3 handling has been compared to Alfa’s Guilia QV which has near BMW M3 handing and costs nearly $70k. A SR Model will be lighter than the LR. You think a $35k Tesla will handle like a $60k – $70k BMW or Alfa? I don’t.

Kent

When I try to go to teslamotors.com, it automatically redirects me to: https://www.tesla.com/nl_NL/?redirect=no

Does anyone else have this problem?

Rolando

‘teslamotors.com’ ending up on ‘tesla.com’ for me

Nix

Your browser thinks you are located in a foreign country. Try from a different browser.

Robert Weekley

Are you in the Netherlands? Or using a service provider from there?

You can go to the bottom of your NL page, and see,,as well as check the USA Flag, to push it to go there.

*Some time back, teslamotors.com became simply tesla.com! No error in the website, they just got the domain, and set the pointers there!

Eric

Hardly the $35k affordable model 3 it seems

Sharpe

Not now.

Henry

That’s over $3B revenue in Q3 for the Model 3 alone. Tesla should make some tidy profits this quarter.

CCIE

They have demand at that price point, so might as well take advantage of it. Even Tesla was surprised by how many people opted for AWD vs RWD. I’m not surprised since many people have an irrational fear of driving a RWD car in any snow.

The performance version is also quite popular among people who love speed. It’s a good deal for a 3.5s 0-60mph car.

I do agree with a lot of the sentiment about people borrowing money to spend on a depreciating asset. It’s never a good idea to stretch finances for a luxury item.

I also think we’re seeing the impact of the federal tax credit expiration. People who weren’t planning to buy (myself included) did the math and found that it’s better to buy now and get the full $7500 plus whatever their state gives.

In January, when US M3 demand falls off, Tesla will likely start filling international demand. Once they satisfy worldwide demand for $50k+ M3s, then they’ll starting making versions that are SR + PUP. Then they’ll pump out a few token $35k M3s.

Stan1

“I do agree with a lot of the sentiment about people borrowing money to spend on a depreciating asset. It’s never a good idea to stretch finances for a luxury item.”

Which is why most people don’t buy new cars. New cars are sold to the upper income buyers. Used cars are bought by average and below average income buyers.

CCIE

Math says that can’t be true. At least slightly more than half of sales need to be new cars, or the supply of used cars would run dry. It needs to be at least slightly ore than half because some cars are crashed/lost before they can resold.

Jeff

I think they will have a great Q3. I have been making good money on puts with all the crazy town stuff lately, but I am about ready to start buying long dated calls.

Scott

Nice people are ordering lots of options. It is hard to find any base price car. I wanted a sun roof on a X5 but it was bundled in a $10,000 option. Anyway, I love my Model X and glad Model 3 doing well!