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Originally Posted by Darth One
I never got why they insist on setting a $35k base price anyway.
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It goes back to the promise made ten years ago to build an EV affordable enough for the average person to buy. The goal was set at $35k, and it was clear as years went by that potential customers (and investors) were holding them to it. At this point, though, it is largely symbolic because the cost of batteries and other EV tech is on a downward trajectory, and it is obvious that EVs will eventually become ubiquitous at all price points that ICE vehicles occupy today.
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I’m the farthest thing from a Tesla fan, but even I have to admit that the car has enough performance and content to be a good value at a much higher price.
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There are certainly some ICE vehicles out there with $35k base prices that are less appealing. Furthermore, when you compare to the other 200+ mile range EVs available at a similar price such as the Kona Electric, Bolt, or Leaf Plus, it is obvious which vehicle is going to be most fun. Regardless of how the drive wheels get their power, if you’re shopping for a RWD sport sedan, you don't arbitrarily consider FWD hatchbacks with far less performance pedigree, especially at the same price point.
Still, I think they have the pricing right about where it should be. The product isn’t without quirks, and the corporation has made some questionable moves. For the non-enthusiast buyer who does not place performance at or near the top of their list of priorities in a vehicle, looking past those things may require some incentive. At the end of the day, Tesla needs sales from all types of buyers to hit the volume required to sustain some semblance of profitability.
It gets more interesting over the next few years when other automakers start to bring EVs to market that can match the Model 3 and Model Y in value. I think VW might be in the best position at this point to fire the first salvo. They’ve got a dedicated RWD-first EV architecture like Tesla does, with products debuting this year, and they are perhaps the furthest along of any major manufacturer in that regard. I like where Ford’s sitting too because they’ve got an exciting electric SUV coming next year - ahead of the Model Y - on their own EV platform, which could also spawn some other desirable vehicles (like a small RWD Lincoln sport sedan).