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Discussion Starter · #1 ·
As per the Title. I think even though out of the EU we still have a 10% Import duty on cars from the USA, and maybe 10% too for RHD Tesla cars imported from China?

So if they switch to making UK RHD TM3 in GigaF Berlin once producing late this year / next year, would that mean a 10% reduction in price (depending on £/€ exchange rate) now we have agreed on 0% import export tarriffs on EU/UK made cars ?

Any experts?
 

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There will be some other margin improvements I think - they are installing 8 gigapress at Berlin, so expect the model 3 from berlin to use single-piece cast front and rear underbody (and the rear of model 3 has come in for significant criticism from munro etc because of the expensive manufacturing (lots of parts welded together)).

It is plausible that model 3 and model Y Body-in-White could eventually comprise of a very small number of pieces (gigacastings for front, rear, left and right, then the structural battery pack and 2 roof cross-beams. 7 pieces!) which would massively reduce costs in the build.
 

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The way I see it, why would Tesla reduce the price of something that sells so fast at its current price? Several months ago Cleanerwatt on YouTube said prices would reduce, I commented that they wouldn't, he told me I was wrong, so far I'm not wrong. As mentioned above, more profit margin for Tesla. Why would they pass on cost savings when they could plough the money back into the company to satisfy investors? They'll only potentially reduce prices if competition starts to affect sales, but even then, tesla may have other models out to keep the fight going
 

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The way I see it, why would Tesla reduce the price of something that sells so fast at its current price? Several months ago Cleanerwatt on YouTube said prices would reduce, I commented that they wouldn't, he told me I was wrong, so far I'm not wrong. As mentioned above, more profit margin for Tesla. Why would they pass on cost savings when they could plough the money back into the company to satisfy investors? They'll only potentially reduce prices if competition starts to affect sales, but even then, tesla may have other models out to keep the fight going
Simple really.. the cheaper they are the more they'll sell especially with competition arrving thick and fast.
The base ID3 for example at around £25k ( if they can sort out the teething problems) is £15k cheaper than a SR+ and quite appealing for the price.
If Tesla can get their prices down they could potentially take out alot of the competition.
The super charger network will be less relevant as time goes by Imo.
 

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Simple really.. the cheaper they are the more they'll sell especially with competition arrving thick and fast.
The base ID3 for example at around £25k ( if they can sort out the teething problems) is £15k cheaper than a SR+ and quite appealing for the price.
If Tesla can get their prices down they could potentially take out alot of the competition.
The super charger network will be less relevant as time goes by Imo.
You seem to think that Tesla are after market share.

This couldn't be further from the truth.
 

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Currently they are selling everything that they can make, so why cut margin when they are supply constrained?
Seems alot more inventory availability recently and they were desperately trying to hit 500k sales for the end of the year.
I would think they want to sell as many cars as possible.
I believe Elon has said many times the cars are too expensive
 

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Discussion Starter · #12 ·
Currently they are selling everything that they can make, so why cut margin when they are supply constrained?
Conflicted, as a shareholder i want maximum margins, as a potential 2022 Model Y customer, i want lower prices for SR+. But i do believe it is in Tesla's roadmap to reduce selling prices when they can a maintain the same $ margin, thus increasing the actual GM%.
 

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Seems alot more inventory availability recently and they were desperately trying to hit 500k sales for the end of the year.
I would think they want to sell as many cars as possible.
I believe Elon has said many times the cars are too expensive
As was stated, they are supply constrained, not demand constrained.
 

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Simple really.. the cheaper they are the more they'll sell especially with competition arrving thick and fast.
The base ID3 for example at around £25k ( if they can sort out the teething problems) is £15k cheaper than a SR+ and quite appealing for the price.
If Tesla can get their prices down they could potentially take out alot of the competition.
The super charger network will be less relevant as time goes by Imo.
My point (kind of only valid for the time being) is that they've never exactly struggled to sell their cars, and the only real "push" they gave was when they wanted to hit Elon's 500k target for 2020, and even then it wasn't a price reduction it was a years free SC. He's doing what he can to actually avoid "money off" for now. As I mentioned, rather than worry about competition he's just making the smaller car soon rather than reduce the price of the model 3.
 
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