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Old 10.01.2021, 14:16
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Re: Tesla 'Model 2' $25,000 Hatchback concept

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It would be a massive hit with buyers and would substantially undercut VW's ID3....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.
Agree. Musk has said this is an objective of his.

At that price he would generate a pretty nice volume which would easily take care of the fixed costs - volume is usually more important than gross margin there.
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