LTLFTcomposite wrote:lorenfb wrote:It's actually simpler than that - Tesla needs a volume vehicle (Model 3) for long term survival!
Hopefully for their sake they're figuring out how to do that profitably, losing money on each car and making up for it with volume is a flawed strategy
I'm no expert in such matters, but I think the goal from a marketing perspective is to draw more people into the brand via the lower cost offering, then over time some percentage of those customers aspire to the "luxury" offerings where margins are fatter - you know, impressing people you don't like spending by spending money you don't have. At some point it could even require spinning off separate branding like Toyota/Lexus, Nissan/Infiniti, but that's a long ways down the road.
An OEM automotive company with two luxury vehicles (S & X) only and at their present volume, growth rate, and price points
isn't a long term viable business model. Obviously Model 3 needs to be profitable and not just from a gross profit standpoint
like Models S & X. Model 3 needs to "carry" the majority of Tesla's overhead structure long term.