Time didn't stop today. This is the first year of Model S.  And NO
manufacturer expects to recoup 100% of their production costs in just one
year of a new model line.  Geeze...  bob

The did exactly what they said.  They *introduced* the affordable EV for
the rest of us.  Sales will follow.  In fact, for September, the Model 3
is the #1 selling car in America...

Bob
-----Original Message-----
From: EV <[email protected]> On Behalf Of EVDL Administrator via
EV
On 16 Oct 2018 at 6:35, Paul Dove via EV wrote:

> A car manufacturer doesn't make a profit till the production line is
> paid for.

Of course, but Tesla's declared intent from the start was to make enough
money on the luxury models (X and S) that they could afford to introduce a
more affordable "Tesla for the rest of us."

Apparently you disagree, but un my view, they failed.

Maybe they didn't make enough money on the pricey Teslas.  Maybe they blew
too much on other stuff.  Maybe they tried to introduce the 3 too soon
(and that could be because GM scooped them with the Bolt).  I don't know
the reason, just that the "affordable" Tesla isn't, at least not now.

I find it interesting to compare Tesla's approach to Honda's -- granted
that the latter is a much larger company.  When they launched the Accord
in 1976, Honda priced it aggressively, to build demand.  They probably
took a loss.
The price rose in later years as it gained sales.

Similarly, Toyota took a loss on the early Prius.  I think that was also
the case with the Nissan Leaf.  That's just what automakers have to do
when they want a new and different vehicle to succeed. That and lots of
advertising.

I understand that maybe Tesla can't afford to do the same, but I'm not
sure they can succeed in the long run if they don't.  That's especially
true in the US, which is regressing into a less EV-friendly market.

Maybe the "Tesla cachet" will carry them through, if they can maintain
their reputation.  Time will tell.

David Roden - Akron, Ohio, USA
EVDL Administrator

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