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0 pointsgambiting8y ago0 comments

I have some people at work who really want a Tesla. Like they would never ever consider spending 100k Euro on a Merc S class or an Audi A8, but they are willing to take on a huge financial commitment just to drive a Tesla - it's a brand + hype thing. I suspect that most of them will end up getting a Model 3 instead since that's far more into their price bracket.

I still think you are right - if you can "easily" drop 100k on a model S you are not going to buy the Model 3 instead. But if you were saving up for a model S and would have eventually bought it had Model 3 not became available, then yeah, Model 3 has just cannibalized those sales.

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2 comments · 1 top-level

csomar8y ago· 1 in thread

I don't think these people are a big segment of the market. When you drop from 100k to 35k you are opening the doors for a whole bigger market.

mikeash8y ago

They wouldn't be a big segment of the typical market for a car in this price range, but Tesla is different. A huge number of Tesla owners upgraded from Priuses or similar, and never would have considered a $70,000+ car otherwise. I was one of them, and if the Model 3 had been available a couple of years ago I really doubt I would have purchased a Model S. (Not that I regret it in the least, I just would have taken a cheaper option if there had been one.)

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