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The one thing I don't get is that everybody assumes there is unlimited demand for Tesla cars, Tesla just needs to be able to produce. But realistically, let's a

by ro-_-b 7y ago

The one thing I don't get is that everybody assumes there is unlimited demand for Tesla cars, Tesla just needs to be able to produce. But realistically, let's assume that in 1-2 years government subsidies will end then how many people will still want an EV for a price tag of minimum 30k & can afford it? All that Tesla produces are cars for the premium segment despite some mass market rhetoric.

saagarjha 7y ago
Does Tesla still qualify for large government subsidies? I thought they had ran through their allocation long ago.
- alphabettsy 7y ago
  In the US they have. Some state governments still have them.
- svet_0 7y ago
  They did mostly in US, there are still some significant subsidies in European and Asian countries. Regardless I believe demand for EVs will explode in the next decade and Tesla's challenges will stay in production, not in demand.
bfieidhbrjr 7y ago
My God, you're right! Nobody has ever thought about that, or Googled it, let's short TSLA immediately! I wish I could respond nicely, maybe it's been too long of a day.
mikeg8 7y ago
I think there is a massive market of young people that would love to own a Tesla when they reach the required income level. It’s a green product, from a company with grand ambitions to address climate change, and an incredible car. Everyone I know who has one loves it, and most who get to drive them, wish they had one. It feels like the future, and 30k isn’t a crazy price for the value if offers.
- Marsymars 7y ago
  As a young(ish) person, what would most interest me in an electric car is essentially an electrified Corolla. I don't derive any value from performance, features, or looks. I care about safety, reliability, range, and cost. A Model 3 with 500km of range is over triple the price of a Corolla and a Leaf is over double the price in my market - they just don't make financial sense until they drastically drop in price.
  - gordon_freeman 7y ago
    I own a new 2020 Corolla Hybrid and it gives me 58 mpg mileage and cost me $25,000 including all the destination, DMV, etc. charges plus with 3 years of add-on maintenance. Impressive considering when I pay $350 EMI ($0 down-payment on 84 months loan) every month on it and it already saves me about $70 that same month on gas compared to my previous car. So overall the Adj EMI would be just $280.
- rorykoehler 7y ago
  Personally I'm planning to get a VW buzz once they're released
- Someone 7y ago
  ”It’s a green product” ‘Green’ also depends on how you use it. One can argue that, for many use cases, those cars are way too big and heavy to be called ‘green’.
- RickJWagner 7y ago
  I'm solidly middle-aged (mid-50s) and I would love to own a Tesla. Not for the green creds (which are still nice) but for the performance. I'll take a dual-motor version with a big battery, please!
- ProZsolt 7y ago
  > there is a massive market of young people that would love to own a Tesla when they reach the required income level. I'm one of them. If I would be on the market for a car it would be a Tesla, but I most likely never will never own one. It's a great car, green, geeky and the performance is superb, but I much prefer to use public transportation when getting around. Most of my friends (age ~30) with disposable income just don't want a car. We live in cities in Europe where public transportation is good enough. Owning a car is just a burden if you would only use it for weekend getaways. The people who live in the countryside where you need a car for day-to-day life just can't afford it.
bryanlarsen 7y ago
There are basically two options: - high demand for EV cars - the world is screwed It looks like the world is going to choose number 2. If subsidies end they are going to have to be replaced by something else. A carbon tax is the best option, but strict fuel economy standards like Europe has is also an option.
rconti 7y ago
It's like you haven't done your homework. The most surprising thing to me over the past year is how strong demand has remained, as subsidies phased out. All 3 of my Model 3 referrals, in fact, happened in Q4 of 2019, and all from friends saying "hey, I'm gonna buy a Tesla, don't you have a referral code or something?" It had nothing to do with me talking about the car, or giving them rides, or anything. Just totally out of the blue. I was one of the many folks who (probably like you?) was thinking, once summer 2018 turned into fall 2018, and Tesla worked through the backlog of Model 3 orders (and the well-publicized cancellations and demand for deposits back) that there wouldn't by much demand left. I guess that shows my blind spots as a car person, I just assumed everyone knew about most new vehicles on the market, and what they had to offer. But their prevalence in the market has only driven demand harder.

by ro-_-b 7y ago

saagarjha 7y ago

Does Tesla still qualify for large government subsidies? I thought they had ran through their allocation long ago.

alphabettsy 7y ago
In the US they have. Some state governments still have them.
svet_0 7y ago
They did mostly in US, there are still some significant subsidies in European and Asian countries. Regardless I believe demand for EVs will explode in the next decade and Tesla's challenges will stay in production, not in demand.

bfieidhbrjr 7y ago

My God, you're right! Nobody has ever thought about that, or Googled it, let's short TSLA immediately! I wish I could respond nicely, maybe it's been too long of a day.

mikeg8 7y ago

I think there is a massive market of young people that would love to own a Tesla when they reach the required income level. It’s a green product, from a company with grand ambitions to address climate change, and an incredible car. Everyone I know who has one loves it, and most who get to drive them, wish they had one. It feels like the future, and 30k isn’t a crazy price for the value if offers.

Marsymars 7y ago
As a young(ish) person, what would most interest me in an electric car is essentially an electrified Corolla. I don't derive any value from performance, features, or looks. I care about safety, reliability, range, and cost. A Model 3 with 500km of range is over triple the price of a Corolla and a Leaf is over double the price in my market - they just don't make financial sense until they drastically drop in price.
- gordon_freeman 7y ago
  I own a new 2020 Corolla Hybrid and it gives me 58 mpg mileage and cost me $25,000 including all the destination, DMV, etc. charges plus with 3 years of add-on maintenance. Impressive considering when I pay $350 EMI ($0 down-payment on 84 months loan) every month on it and it already saves me about $70 that same month on gas compared to my previous car. So overall the Adj EMI would be just $280.
rorykoehler 7y ago
Personally I'm planning to get a VW buzz once they're released
Someone 7y ago
”It’s a green product” ‘Green’ also depends on how you use it. One can argue that, for many use cases, those cars are way too big and heavy to be called ‘green’.
RickJWagner 7y ago
I'm solidly middle-aged (mid-50s) and I would love to own a Tesla. Not for the green creds (which are still nice) but for the performance. I'll take a dual-motor version with a big battery, please!
ProZsolt 7y ago
> there is a massive market of young people that would love to own a Tesla when they reach the required income level. I'm one of them. If I would be on the market for a car it would be a Tesla, but I most likely never will never own one. It's a great car, green, geeky and the performance is superb, but I much prefer to use public transportation when getting around. Most of my friends (age ~30) with disposable income just don't want a car. We live in cities in Europe where public transportation is good enough. Owning a car is just a burden if you would only use it for weekend getaways. The people who live in the countryside where you need a car for day-to-day life just can't afford it.

bryanlarsen 7y ago

There are basically two options: - high demand for EV cars - the world is screwed It looks like the world is going to choose number 2. If subsidies end they are going to have to be replaced by something else. A carbon tax is the best option, but strict fuel economy standards like Europe has is also an option.

rconti 7y ago

It's like you haven't done your homework. The most surprising thing to me over the past year is how strong demand has remained, as subsidies phased out. All 3 of my Model 3 referrals, in fact, happened in Q4 of 2019, and all from friends saying "hey, I'm gonna buy a Tesla, don't you have a referral code or something?" It had nothing to do with me talking about the car, or giving them rides, or anything. Just totally out of the blue. I was one of the many folks who (probably like you?) was thinking, once summer 2018 turned into fall 2018, and Tesla worked through the backlog of Model 3 orders (and the well-publicized cancellations and demand for deposits back) that there wouldn't by much demand left. I guess that shows my blind spots as a car person, I just assumed everyone knew about most new vehicles on the market, and what they had to offer. But their prevalence in the market has only driven demand harder.