Why ignore economies of scale?
And, I continue to wait.
I have been in the line for a Tesla 3 configured to my taste since March 31, 2016. Yes, I did get the invitation. But, for a configuration that I did not want. As time lapses, I realize that the 35K electric car will perhaps never happen. I already went through one new car purchase while waiting and chose a Accord Hybrid which will perhaps cost me about 35K over the next 5 years. I have one more car to be changed, and 2 years at most.
At the heart of this problem that I am running into is the bet that Tesla is making - that selling high priced variants is a better way to achieving scale than selling low-priced variants. I am sure that all-knowing Musk has figured out some magic way to scale production with high-end versions. But, I just don’t understand the logic of how economies of scale would be considered less important in this industry.
Sure, I don’t have the breakup of orders by variants, but it is safe to assume that most of them would have been mid-range. Why make the high-end first ? Wouldn’t the better bet have been to get to the mass market first? Wasn’t that the goal of Tesla 3 all along?
I am increasingly losing confidence, but yet hold on to the hope that there is a future out there for a mass market electric car. I hope Tesla proves my doubts wrong.
#futurism #electriccars #tesla #marketing