Lawrence Rhodes via EV wrote:
I keep hearing that Tesla might introduce a smaller, cheaper EV. That would
open up EVs to a wider range of drivers, but would also cut into their
profits.
I continue to wonder why a smaller cheaper car would mean lower profits.
It seems like there are endless examples of cars (and many other
products) where profits *increased* when cheaper versions were produced
in higher volumes.
A smaller car uses less materials, so can be cheaper to produce.
Vast numbers of people just need basic transportation; they don't want
(and can't afford) high-end stereos, NAV systems, heated seats, supercar
performance, fancy wheels, etc. It's an under-served market.
Tesla may not be the right company to deliver on this. Right now, they
are capacity limited; so they may as well sell the cars they can build
for as high a price as possible. Their market is mainly up-scale luxury
performance vehicles.
But I can certainly see some other automaker recognizing the need; and
they may be working right now to make the next "peoples-car" to fill it.
Lee
--
The reasonable man adapts himself to the world. The unreasonable man
persists in trying to adapt the world to himself. Therefore all
progress depends on the unreasonable man. -- George Bernard Shaw
--
Lee Hart, 814 8th Ave N, Sartell MN 56377, www.sunrise-ev.com
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