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Well, price also holds people back. An entry level Tesla with autopilot is still north of $40k after taxes (even with the break).



Average price of a new car in the US is $37k. 17 million new cars a year sold in the US. Price isn’t as big of an issue as it’s made to be. If you can’t afford a Tesla, you probably should only be looking at affordable used cars anyway (like a Toyota or Honda for $10k-$20k).


Kinda. People in the US spending that much money on a car are more likely to be buying larger utility vehicles (SUV's and CUV's).

So price does indeed become an issue because they're different buying segments. People shopping for the larger vehicles tend to be buying them because of greater usability and comfort for driver and passengers.

The Model 3 sits firmly in the compact sedan segment, something entirely different. The people buying those are either looking for pure economy while not having the issues of a used car (in which case starting price is around $20,000), or they're buying in the luxury car segment which is where the M3 is, meaning it's no different then buying an Audi A3.


Different strokes I guess.

For me it’s the utility factor. I can get a well equipped, 4 door Tacoma for $32k. That’s a hell of a lot more useful to me than a $40k Tesla. Perhaps if Tesla had a small sized pickup for less than $45k I’d give it a look, but their lower-end options just aren’t that attractive.

When you’re looking at a vehicle that’s the size of a civic, that isn’t a fun sports car, I just don’t see how the average American can justify it. I’m not exactly sure who Tesla Model 3 is supposed to be competing with. It’s not cheap enough to compete with Honda, Toyota, etc. and it’s not expensive enough to compete with luxury brands like Mercedes, Lexus, etc.


Most Americans don't need a pickup truck (I know, the horror of such a statement). If you value the added utility, different strokes. Tesla is pulling sales from entry level models produced by luxury manufacturers, but also pulling sales from people who would've traditionally paid less for a non luxury vehicle. My brother badly wanted a 4Runner until I let him borrow my Model S for a week. He then decided he couldn't live with anything other than a Model 3 or S.

I expect Tesla sales to increase further with the introduction of the Y crossover built on the 3 platform.


If you don't have an SUV or pickup truck, how would people know that you have an active lifestyle?


Different flexes for different folks.


That’s the average but what’s the median? The long tail on new car prices crosses multiple orders of magnitude.


Looks like for light vehicles it’s bimodal, with peaks at both $28k and $40k: https://www.energy.gov/eere/vehicles/articles/fact-989-augus...


All teslas come with Autopilot I believe




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