Part 7/12:
This phased approach also extends to leveraging the existing production lines for the Model 3 and Model Y, which are highly profitable. Spreading new capacity and parts through these lines allows Tesla to amortize fixed costs more effectively, reducing per-unit costs and increasing overall profitability.
The Role of Price and Market Segmentation
The discussion touches on Tesla’s potential for creating a more affordable vehicle, possibly around the $25,000 mark, especially after federal incentives. Such a vehicle would likely be a compact model, subsidized to reach a broader market segment.