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From Electrek: Tesla turns to in-car purchase with its software-locked features

Discussion in 'News from Electrek.co' started by RSSFeed, Nov 8, 2016.

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  1. RSSFeed

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  2. Michael Russo

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    Call me cheap, but I find this an excessive premium for a software upgrade, even for MS. I'd love to consider the intermediate battery on my Model ≡ (i.e. presumably the 75 kWh instead of the 55-60 kWh?) yet I would not pay more than 10% of the value of the car (hence €3.5-4K VAT included) as I am assuming - or should I write hoping... :) - the base price will stay under €40k VAT incl. which would still make T≡SLA some money over a $35k basis in the US at current forex rate even with shipping to EU (not sure how much that is, $2K?)...

    Of course with this premium, I'd get it from the start, not as subsequent OTA upgrade... :)
     
  3. TrevP

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    @Michael Russo please keep in mind Tesla is doing everything it can to maximize profits using Model S/X options to fund Model 3 so they don't have to sell more debt. Those to can afford those options will pay for it but don't expect those kinds of prices on a car that costs half of a Model S. Not only is it not in line with with the target market but also not necessary at that point but would also affect uptake from the customers.

    People are smart, they can justify those options pricing on a car that's $100K because it's a certain fractional cost but on a $35K not too many people are going to shell out $8K for Autopilot. Options pricing has to be commensurate with the vehicle's base cost if they want people to spend more $ to help with margins.
     
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    • Michael Russo

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      Thanks, Trev... I know... Like you and many others I guess I can't wait to see the price list... In Euros!! :)
       
    • AEDennis

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      Just remember that non USD prices fluctuate and adjust as the USD:FOREX rate adjusts (in a quarterly basis, unless of huge fluctuations.) Tesla doesn't seem to hedge the forex market for this. (all pre-tax and pre-incentive.)
       
    • MelindaV

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      I hope that "purchase" button has some sort of multipart authorization
      I don't really want the chance of a $9,000 inadvertent purchase made. A little bigger deal than the kid/dog chewing on a phone ordering something on amazon
       
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      • AEDennis

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        I believe that Amazon has a patent in the "buy it now" in one-click button on a browser...
         
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        • Dan Detweiler

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          You obviously haven't seen my Amazon bills.

          Dan
           
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          • TrevP

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            This is a huge issue I wish they would deal with. Pricing everything in USD and doing pretty much a direct forex into local currencies is not helping with keeping the cars affordable. Model S has gone up in price over $20,000 in Canada over the last 2 years because of this. I don't see price increases like this with any other car company.
             
          • AEDennis

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            Agreed. However, a lot of the solutions that other car companies has done for this type of hedging is to have the price ex-US to be significantly higher, especially for luxury cars.

            Look at what China prices are for an S class vs here.
             
          • Michael Russo

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            Which I think makes no sense... except if you consider value pricing... as well as next best alternative. In this way, admitting of course you can compare an ICE car with a T≡SLA, e.g. a 3-Series Beemer with a Model ≡ (OK, I know... It's a stretch..!), what would matter if how BMW prices its car in the various geographies, more than forex changes...

            Forex pricing is cost plus pricing... It is in fact intriguing that T≡SLA, which is obviously a great Marketing company in addition to being a Technology leader, would follow this route...

            Have a nice evening... :)
             

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