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Comment by bsder | Hacker News Reader

> I have borrowed a new 2018 Tesla Model 3 Performance ($78,000, as tested)

I'm actually rooting for Tesla, but wasn't the Model 3 supposed to be affordable for the masses?

$78K isn't "for the masses". The incumbents aren't going to be sweating very much at that price.

$78k is their most expensive version. The cheapest Model 3 you can get now is RWD + premium interior (no standard interior offered yet) + long range battery = $49k. Tesla still says that base version should come at $35k some time next year.

A performance model isn't for the masses.

Compare it to a BMW 3 series. The BMW M3 is a lot more money and isn't for the people that go for the 328i version.

Yeah but the BMW i3 is a direct competitor. And it costs $50k and is a much better car than the Tesla model 3.

They’re producing the most expensive (read: profitable) versions first. I don’t understand why so many people are upset about this. As production increases and they fulfill reservations from people who want to spend more, cheaper versions will become available.

I'm not upset, but Musk probably is.

The longer he concedes the $30K-$40K range, the harder it's going to be for Tesla.

Toyota Prii used to be $40K. The same model is now around $28K.

GM is moving quite a few Chevy Volts in the $35K-$incentive range. The volume is significant enough that GM have a not insignificant probability of losing their incentive qualification this year.

Every one of those cars sold is a potential Model 3 customer who is out of circulation for the next 5 years or so.

According to insideevs.com, the Volt is selling about 1,300 cars/month this year, and the Bolt is about the same, so 2,600 cars/month total. The Model 3’s average this year is 4,000/month, and that’s dragged down by slow production in the first few months of the year. They’re likely at 12,000/month by now and are likely to hit 20,000/month before too much longer. They still have nearly half a million reservations. I don’t think they’re too worried about losing a significant number of sales to GM.

"Toyota Prii used to be $40K"

I don't think so. The first Prius available in the US, in 2000, was $20K. They've started in the mid-$20s for years.

I am echoing that feeling - Musk was touting Model 3 being a mass produced affordable long range (200+ miles) mainstream EV, but at $78k price tag, it's far from mainstream. Unless they can bring the cost down to the $30k price tag, I bet it won't sell as much as Musk hoped for. Granted Dan Neil tested the fully loaded performance version, the base version of Model 3 still hovering over $50k as far as we can see it producing right now.

All other manufacturers are catching up though, hopefully the battery cost reduction due to economy of scale will eventually allow Tesla to price it to be $30k, but I don't think it will happen before 2020 (assuming Tesla Motors is still around).

The base Model 3 hasn't shipped yet. However, if you go by Tesla's previous product launch history, the $35k base model will ship about 3 seconds after Tesla runs short of demand for the more expensive versions.

This is the Performance model. The $35K base model hasn't shipped yet.

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