As Production Ramps Up Will There EVER Be Room For The $35K Tesla Model 3?

As Production Ramps Up Will There EVER Be Room For The $35K Tesla Model 3?

Tesla’s production ramp for the Model 3 has not been easy for the company. Since starting the production of the electric sedan last year, the Model 3 ramp has been beset by multiple challenges, including bottlenecks in both the Fremont factory and Gigafactory 1. That said, Tesla appears to have hit its stride in manufacturing the electric sedan in Q3.

The company’s production and delivery numbers for the quarter are yet to be announced, but estimates, including those from Tesla’s staunchest critics from Wall Street, are high that the company has achieved its target of manufacturing and delivering more than 50,000 Model 3 in the third quarter. And this is despite the company only producing three variants of the electric sedan — the Long Range RWD, Dual Motor AWD, and Dual Motor Performance Model 3. The variant of the electric car that is designed to be a true disruptor in the auto industry — the $35,000 Standard trim Model 3 — is yet to enter production.


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SanJoseDriverSanJoseDriver - 10/3/2018 2:00:34 PM
-9 Boost
Of course, and there will be a compact car even less than $35k at some point. If you're selling every $55k AWD variant you can make, I would focus on those first. Maybe allocate X/week for early reservation holders once the $35k version has a gross margin.


ColMosbyColMosby - 10/3/2018 3:16:03 PM
+6 Boost
The $35,000 Model 3 IS a compact and was supposed to be a mass market car. But, at best it could only do that with massive govt subsidies. The base Model 3 likely wil never be profitable, especially after competitors with their $7500 tax credits intact come on the scene.


SanJoseDriverSanJoseDriver - 10/3/2018 11:05:00 PM
-8 Boost
The Model 3 is technically a midsize car, same as the 3-series, A4, IS, C-class. A compact would be 1-series, A3, A-class sized.


TomMTomM - 10/3/2018 4:07:03 PM
+14 Boost
You are missing the point entirely with that question

THe answer is clear - they NEVER COULD produce a $35,000 Model 3 at a profit - and they still cannot do it. If it were profitable - they would have been making them all alone - but they have avoided doing so like the plague.

WHen they actually admit that to be the case - and produce only the cars for which they ACCEPTED deposits at a loss - and then cancel any further production - will still depend on their financial status.

I do not believe that they CAN produce a car in that price range and make a reasonable profit from it. Making a SMALLER Car would not make it that much cheaper to produce - and removing content - well what is actually in the interior of a model 3 that they could take out? Its interior is already outclassed by a number of go carts.

Bt it remains - until it becomes possible to produce an EV that the middle class working man can afford - and that is WAY OFF IN THE FUTURE - because the working guy cannot even afford the average new ICE car today - the market for EVs will - I believe - top out at maybe 5% of the market -over the next 20 years. ANd who knows what will be invented over those years that could supplant the need for an EV to begin with - a Huge investment in infrastructure still has NOT even started up - and we will need MANY MANY new Electric generating plants alone - to service even a 10% market.


SanJoseDriverSanJoseDriver - 10/3/2018 11:09:11 PM
-8 Boost
A slightly smaller size with a smaller battery could easily take $5k off the price with 0 compromise on the range/performance of the Model 3. With less range and removing some features (pulling out the Autopilot GPU for those that don't buy it), $25k would be possible.


MDarringerMDarringer - 10/4/2018 12:29:28 AM
+4 Boost
So a substandard product? #SoTesla


SanJoseDriverSanJoseDriver - 10/8/2018 3:31:57 PM
+1 Boost
Nope, not sustandard, just smaller. They could make a car with the same performance and range and a Model 3 in a A3 size for a $30k consumer price I think.


TheSteveTheSteve - 10/3/2018 4:53:42 PM
+14 Boost
The $35,000 Model 3 scheme sure looks like a classic "bait and switch" scheme:
- Claim you'll produce a $35,000 Model 3
- Take deposits
- Lead-up to late Model 3 launch: Try to upsell deposit-holder to a much more expensive Model S
- At Model 3 launch, claim you'll make the base models later, while producing only heavily-optioned $50,000 Model 3s
- Try to upsell deposit-holder to a much more expensive, heavily-optioned Model 3s
- Today: Still no base model $35,0000 Model 3s for sale, but we'll make them... for sure... some day... promise. In the meantime, can we interest you in loaded Model 3 or a Model S?

Bait and switch.


MDarringerMDarringer - 10/3/2018 6:24:18 PM
+10 Boost
The $35K model was 100% a scam.


EVisNowEVisNow - 10/4/2018 12:00:16 AM
-8 Boost
You guys are such a bore with your usual rants about the $35K Model 3. Why not stick to the theme about Tesla going bankwupt in a matter of months ? When did that stop ? Did the Model 3 run over your crystal ball ?

It's funny to see the talking points changing quickly in just a few months. At this rate you'll run out of thing to bash Tesla by the end of this year.


MDarringerMDarringer - 10/4/2018 12:28:46 AM
+6 Boost
Where's the profit? You mean all of Elon's criminality hasn't resulted in a profit????


EVisNowEVisNow - 10/4/2018 12:08:59 AM
-9 Boost
For those who insist in the $35K Model 3, every one of the Model 3 on sale today starts at $35000 - it's written down in the MVPA. However, the current option list is long and pricey, and every potential customer is aware of it. There is no ambiguity and no trick.

The only trick is the one your mind is playing on you.


supermotosupermoto - 10/4/2018 12:04:29 PM
+2 Boost
"The only trick is the one your mind is playing on you."

Go to Tesla's website. Cheapest Model 3 is $49k. The base figure on the purchase agreement could be $1 but it doesn't matter since you can't buy the car for less than $49k.


TruthyTruthy - 10/4/2018 1:05:41 PM
+2 Boost
To EVisNow - Tesla financials are still in sorry shape. CFO leave through a revolving door. There is better competition coming on-stream, there is a recession coming and the tax incentives will end. Many of those who put $1,000 down were expecting to buy a $35,000 car. The fact that he is ignoring them to sell higher priced cars ought to result in a class action suit.
To MD -all the profit is in Elon's and his relatives (cousins owned the extraordinarily over-valued solar tile company.


SanJoseDriverSanJoseDriver - 10/6/2018 4:23:05 PM
+1 Boost
They only had a few CFOs, and the one who stayed with the company the longest came back last year to resume the role. If things are not well, why would a CFO come back to the same company?

As for all reservation holders, guess what... the $1k is fully refundable. There is no guarantee for a specific spec in a certain amount of time. They have a place in line and if they don't want to wait, they can get their money back and buy a different car.


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