Comment by ruswick | Hacker News Reader

Comment by ruswick | Hacker News Reader

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This model will certainly allow Tesla to access a new and much larger group of potential customers, but I doubt it will be a "main-stream" vehicle. $35,000 is decidedly in the realm of high-end luxury cars (this car is still going to be far more expensive than the entry-level models from Mercedes, Audi and other prestige brands) and is still inaccessible to the vast majority of buyers, albeit not necessarily as exclusive Tesla's previous supercars.

Now, Tesla is no longer an "I need to be a millionaire" brand and instead an "I need to be a lawyer or engineer" brand.

Although this is a really exciting vehicle, I still think Tesla ultimately wants to target the proletariate with cars in the $18,000 to $22,00 range (possibly with a different brand to preserve the elite reputation of the Tesla name). That segment is far more lucrative than the limited luxury market for high-end cars. As soon as Tesla ships a car that can be afforded on an average income, things will really get interesting...

As someone who is very conscious of personal finance, I'd never spend $35k on a car (and something tells me this will be more than that in reality, especially with upgrades). Then again, I'm also the sort of person who chooses to live in an apartment instead of a house just so I can walk to work rather than commute.

That said, it never ceases to flat out amaze me how much others are willing to spend on cars. I imagine you're underestimating how many people buy cars in this price range who make half as much as the typical engineer or lawyer. Given this, I'm willing to bet folks who really have no business in a $35-45k vehicle will flock to it anyway.

People shop on monthly payments. Say that gas is $5/gallon in three years (and I'm pretty sure that's conservative). For 1500 miles a month at 30 mpg, that's $250 a month in gas. Subtract that plus maintenance from your payment and you're getting into econobox territory. I think $35,000 will be a pretty big deal.

If you are going to consider the gas savings, you still need to remember that there are also electricity costs as well.

Yes, totally. Take off about $25 for the electricity. The numbers don't change too much.

but nissan is already promising a 200 mile car for half the model 3 price... your argument is valid for prius today, not for model 3 whenever it's launched.

I agree 100%: https://news.ycombinator.com/item?id=8040578

$35k is not in the realm of high-end luxury cars. $35k is a nicely equipped Camry, Accord or Sonata.

A base model cheap Mercedes is $30k. That extra $5k does not equal high-end, it equals leather and maybe a sunroof on that $30k Mercedes.

The average transaction price of a car in the United States in 2013 was ~$32,000. That figure (from TrueCar) actually excludes Mercedes-Benz, and ultra-exotics.

They cut the price in half, roughly, each time. That seems to be the plan.

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