Part 10/12:
A particularly intriguing possibility is the development of a streamlined, hatchback version of the Model 3—possibly with a reduced weight and a performance-oriented setup—that could outperform traditional sporty models like the Subaru WRX at a competitive price point.
The Business Model and Revenue Outlook
Tesla's strategic approach might involve launching lower-cost versions initially, financed through revenues from FSD (Full Self-Driving) and subscription services, which could offset lower marginal profits on entry-level vehicles. The idea is that although initial manufacturing costs might be higher, the promise of recurring revenue from software and autonomous features could make these vehicles lucrative in the long term.