
Tesla drops cheapest Model X, S variants, cuts prices to simplify lineup - hhs
https://www.reuters.com/article/us-tesla-prices/tesla-drops-cheapest-model-x-s-variants-cuts-prices-to-simplify-lineup-idUSKCN1UB055
======
electriclove
For the model 3, the SR+ dropped ~$1k (now starting at $38,990) partially
offsetting the $1875 decrease in tax credit which began July 1st. The AWD
dropped ~$2k (now starting at $47,990) and the Performance dropped ~$5k (now
starting at $54,990).

Tesla Pricing history:
[https://docs.google.com/spreadsheets/d/1F5IQOynIawoXiJPVarLD...](https://docs.google.com/spreadsheets/d/1F5IQOynIawoXiJPVarLDgPQDJAdzY8b5Vamw-
Vf3eSY/edit?usp=sharing)

~~~
electriclove
The pricing for the higher margin trims offers amazing value for those focused
on performance. Is there much competition for that kind of performance at this
pricing?

Model 3 Performance at $54,990: 0-60 in 3.2s

Model S Performance now includes Ludicrous at $99,990: 0-60 in 2.4s

Model X Performance now includes Ludicrous at $104,990: 0-60 in 2.7s

~~~
PinguTS
But don't use it to often in a row, because the battery will be getting hot
and will limit the power output to level, which is way below any term related
to performance.

~~~
Lendal
You have to be going ~160 mph for several minutes to induce the overheat power
reduction mode. In the US it would take driving on an oval racetrack. I enjoy
watching YouTube videos of people running these on German highways to get them
to overheat. Those are quite fun videos to watch. I highly recommend.

~~~
Tomte
I would appreciate American tourists not to abuse the Autobahn as their
racetrack.

And remember, even when there is no speed limit, Richtgeschwindigkeit is 80
mph, and if you're going faster, the judge will apportion more liability to
you in case of an accident, even if you've driven perfectly.

------
Brendinooo
1\. Those two cars have been out long enough for them to know what sells and
what doesn't

2\. If they need to flash a lower price in marketing materials, they have the
Model 3 now

Seems like a sensible move.

~~~
693471
What marketing materials? Tesla doesn't buy ads

~~~
kasey_junk
Their website? Their brochures at their showrooms? Their embedded articles
like this one?

------
PinguTS
"To streamline our offerings" means "to streamline and simplify our
production"

The past was always about "prices can be lowered (or the margin becomes
better) when the production scales". Now production is back-scaled. It seems
they hit some production peak were more doesn't mean better margin.

Or in other words: "we need more margin on the higher priced versions to be
able to lower the price on the cheap version without hurting our overall
margin that much."

~~~
kalleboo
I haven't seen any evidence that their production has scaled. They brute-
forced production with that outdoor tent and lots of manual labor and cut
corners to attain numbers, but that's not scaling, that's hacking the numbers.
They're still trying to figure out how to get the production line working.

~~~
nickik
They way the build cars with manual labor is pretty much how cars are built.
The automated to much and now they went back to something that is more
industry standard.

They are defently not the best in production of the actual car assembly, but
its not like they are on all that inferior.

And I don't know what you mean with 'cut corners'. What corners?

~~~
kalleboo
> _What corners?_

Another article currently on the front page:
[https://www.cnbc.com/2019/07/15/tesla-workers-in-ga4-tent-
de...](https://www.cnbc.com/2019/07/15/tesla-workers-in-ga4-tent-describe-
pressure-to-make-model-3-goals.html)

> _Employees in the open-air GA4 “tent,” which is not fully automated, tell
> CNBC they were pressured to take shortcuts to hit goals — reducing vehicle
> testing for water leaks and using electrical tape on plastic housings to
> make quick fixes during Model 3 assembly._

~~~
nickik
They use tape to make fixes to plastic covers. What a horrible thing. Slighty
reduced testing? Wow, certainlty has never been done by any automaker ever.
Clearly Tesla are death traps.

Tesla cars have been getting great reviews from virtually every single tester.
The rate as some of the safest cars ever built. But of course they are
horrible because they fixed up some plastic covers with tape. You got to be
kidding me.

Tesla invest way as much into the software and electronic in the car compared
to every other automaker. Go listen to Monroe (who does car breakdown and
costing for other car company) he describes how Tesla software and electronic
is far superior anything in any other car. How they massivly innovated on
battery technology, cooling loop, electirc motors and and much more. He
describes in detail how they are ahead of the competition on those things.
Those things are about 100x more relevant to me then plastic covers.

And I don't own a Tesla or even care much for Tesla overall. But the constant
articles about Tesla being horrible because of every little issue with their
production line is just insane. If that level of detailed analysis was applied
to every new car company trying to bring a car to market, its virtually
certain you could make articles about that as well.

------
lazyjones
Also, multi-coated white is now the default paint (previously one of the most
expensive options). Which is nice and possibly saves some energy in "normal"
climates (white cars are cooler).

~~~
ndonnellan
Should save energy in all climates. White is generally highest reflectance and
lowest emissivity (depends on material obviously) compared to say black, so in
hot climates it won't absorb as much heat, and in cold climates it won't
radiate as much out.

edit: neat table here:
[https://www.thermoworks.com/emissivity_table](https://www.thermoworks.com/emissivity_table)

A polished aluminum car would be the best, but would probably blind all other
drivers.

------
shareIdeas
Mass market car is 40,000 dollars.

That is luxury pricing to the rest of automotive industry.

It shows Tesla is held to a different standard.

~~~
mikeash
The average new car in the US sells for about $37,500. Slightly above average
doesn’t seem too absurd for “mass market.”

~~~
asark
Talking sedans? Damn, I can't imagine spending that much on... well, any car,
really, but certainly not a normal commuter sedan. Or does that include
minivans or trucks or SUVs or "crossovers"?

~~~
mikeash
That includes all of those. You can find a detailed breakdown here if you want
to see: [https://mediaroom.kbb.com/2019-02-01-Average-New-Car-
Prices-...](https://mediaroom.kbb.com/2019-02-01-Average-New-Car-Prices-Up-
More-Than-4-Percent-Year-Over-Year-for-January-2019-on-Tesla-Full-Size-Trucks-
According-to-Kelley-Blue-Book)

------
akmarinov
Anyone with some info on how the European prices changed?

------
LoSboccacc
if one was in the market for the entry model this is the opposite of a price
cut.

~~~
kgermino
True, but it sounds like the base Model 3 also got a price cut.

So, if you’re in the market for a “cheap” electric car, you have a price cut.
If you’re looking for a high end one, you have a price cut. It’s only if
you’re looking for a “cheap, high end” electric car that your cost goes up.

That seems like a reasonable trade off for Tesla. Let the value buyers go for
a Model 3, and push the premium buyers to the higher end. Plus, with the Model
3 released there may not be too many people getting the entry level Model S
and X anyway.

~~~
LoSboccacc
> got a price cut.

from the full price, matching the reduction in incentives.

~~~
kgermino
Good point

------
michaereyess
smart move now they can get more people into Tesla's

------
whenchamenia
How is this relevant tech news? The tesla adverts can stop now.

~~~
navigatesol
> _The tesla adverts can stop now._

Sam Altman has openly condemned critics for being "in it for the money", while
those who own the stock long are just good people fighting climate change.
This is seen as a battle ground, so it's not a surprise. You cannot criticize
Tesla in certain circles:

 _" It's gross seeing so many root against Tesla. Be the person on the side of
the climate and innovation, not the person hoping to make money on puts."_

[https://twitter.com/sama/status/1130913917864034304?lang=en](https://twitter.com/sama/status/1130913917864034304?lang=en)

There's some irony in that the same people who boast about Teslas being the
best selling cars ever also say there are so many "enemies". How can both be
true?

Unfortunately for some, sentiment is shifting away from our Tech Overlords.
Anti-trust here, a fraud or two there and the hero worship will all be over.

------
fortran77
Pushing Tesla more toward the "low end" was probably a strategic mistake. I
think the "3" in general hurt their brand, and the "X" is an oddball in their
lineup.

A better strategy would have been to have just the model "S" and a $200,000
roadster.

A friend of mine got his Los Altos High son a model "3" for graduation. The
other kids make fun of him. "Couldn't you afford a "real" Tesla?" they say!
Like it or not, the "3" is perceived as a compromise--not the real thing.

~~~
reubenswartz
That may say more about Los Altos than Tesla. :)

