On 16 Oct 2018 at 6:35, Paul Dove via EV wrote:

> A car manufacturer doesn't make a profit till the production line is
> paid for. 

Of course, but Tesla's declared intent from the start was to make enough 
money on the luxury models (X and S) that they could afford to introduce a 
more affordable "Tesla for the rest of us."  

Apparently you disagree, but un my view, they failed.  

Maybe they didn't make enough money on the pricey Teslas.  Maybe they blew 
too much on other stuff.  Maybe they tried to introduce the 3 too soon (and 
that could be because GM scooped them with the Bolt).  I don't know the 
reason, just that the "affordable" Tesla isn't, at least not now.

I find it interesting to compare Tesla's approach to Honda's -- granted that 
the latter is a much larger company.  When they launched the Accord in 1976, 
Honda priced it aggressively, to build demand.  They probably took a loss.  
The price rose in later years as it gained sales.

Similarly, Toyota took a loss on the early Prius.  I think that was also the 
case with the Nissan Leaf.  That's just what automakers have to do when they 
want a new and different vehicle to succeed. That and lots of advertising.

I understand that maybe Tesla can't afford to do the same, but I'm not sure 
they can succeed in the long run if they don't.  That's especially true in 
the US, which is regressing into a less EV-friendly market.

Maybe the "Tesla cachet" will carry them through, if they can maintain their 
reputation.  Time will tell.  

David Roden - Akron, Ohio, USA
EVDL Administrator

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