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Old 10.01.2021, 11:17
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Re: Tesla 'Model 2' $25,000 Hatchback concept

It would be a massive hit with buyers and would substantially undercut VW's ID3.

However, it is doubtful it would make much money for Tesla. This is why they and other manufacturers of EV start by making top-of-the-range models first.

The fixed costs are the killer: for a $25,000 and a $100,000 car costs are about the same but if gross profit were 5%, that $1250 per vehicle made again $5000 for the expensive ones.

British Leyland apparently lost £5 on every Mini they sold!

But it may allow Tesla to increase its market share into an area they are not in at the moment.

I have a Model 3 and an 8-year old Golf GTI for my partner. If there was a $25000-ish performance Model 2 - I'd order it today to replace the Golf...
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