Hacker News Reader

Comment by aphextron | Hacker News Reader

It's rather disappointing that Tesla is still completely focused on the niche luxury market, though. The entire lineup of new models (Y, Roadster, Cybertruck) are still just expensive toys for the upper class. They could build a stripped down "Model 2" with a 60kWh pack right now for $25k MSRP and totally change the car buying equation for most new buyers in the US.

View on HN

They are delivering as much value as fast as possible given X metrics.

The cheapest Model 3 price is within the ASP of the average US car, and it is good value.

As soon as they can do cheaper, they will.

>The cheapest Model 3 price is within the ASP of the average US car, and it is good value.

The average, sure. But nowhere near the median. Average prices in the US are heavily weighted by pickups and luxury sales. The median for new buyers is somewhere around $25k [0]. The cheapest Model 3 you can actually buy is still ~$40k without incentives. That's an $800 car payment - firmly in luxury territory. It won't be until the average joe can buy a 60kWh electric car for a $200 payment with a couple thousand down that EVs will go mainstream. At $80/kWh there's no reason Tesla couldn't do this right now.

[0] https://www.concannonbc.com/how-much-does-a-typical-american...

What would be the incentive for this? There is still a heavy demand for cars 30k+, why would they stop doing that for a cheaper car when they are selling every car they are producing at a higher profit? This is currently an issue of manufacturing capacity, accompanied by a demand curve the 3 set in place.

Even if they would release a 25k$ car in EU it would cost way too much due to taxes.

Reply on news.ycombinator.com