Must-Read: Ben Thompson: Tesla Model X Pricing Revealed, Consumer Reports and the Tesla P85D: "Stepping back, when have new things ever not been expensive?...

...Back in 1900 cars were hand-made and cost $1,000, while a horse was only $70. It hardly followed that cars were doomed, or that those building them ought to have f---ed themselves. Moreover, this $132,000 crossover, and the other high-priced Tesla’s that have come before it, are absolutely necessary for the Model 3, and for multiple reasons: --From a technical perspective, every model to date has moved Tesla down the learning curve from the perspective of actually making cars, making batteries, and making software. The importance of this process--and the exponential gains that result--cannot be overstated. --From a financial perspective, the high-priced models sold to-date have helped in two ways: most obviously unit profits can go straight into R&D for future models, but also impressive sales, enthusiastic customers, and rapturous reviews support Tesla’s stock, further issuances of which have been used to pay for launching first the Model S and now the Model X. --Relatedly, and most importantly, from a product perspective, by not prioritizing low prices Tesla has been able to focus on selling a superior experience. This is a big reason why recent low oil prices haven’t put a damper on Tesla’s sales: Tesla’s customers aren’t buying electric vehicles to save on gas! Musk explained this himself in 2006 in a blog post called The Secret Tesla Motors Master Plan (just between you and me)...

https://stratechery.com/2015/features-and-networks-tesla-model-x-pricing-revealed-consumer-reports-and-the-tesla-p85d/

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