Teslas pricing positions the company as a premium brand.
We are clear on that.
Our task in this lesson would be to explore the company's Web site and see how pricing is formulated.
Here I am I've opened Tesla dotcom in my browser.
I would like to order model 3
and will opt for the dual motor all wheel drive which comes at 40 $1200 as you can see below standard
model 3.
Battery will be available in four to six months.
However this is what I wanted to show you.
The price is listed as forty one thousand two hundred dollars.
After incentives and gas savings and then it is also shown as $53000 before any of the savings there
is room for confusion.
But let's continue with the process hoping Tesla has done a nice job of explaining and eleven thousand
eight hundred dollar difference.
We are asked to select an exterior color.
I'll go with a 3 6 5 careers like blue.
I also opt for a white interior which adds another $1000 to the price.
That's fine though.
This is the definition of imaginary money well spent autopilot.
Costs $5000.
This is Teslas state of the art self-driving software.
In addition a scarcity technique has been applied.
The current $5000 price is available at this very moment.
Only if you decide you would like the feature later on then its price would be seven thousand dollars.
I'll include autopilot and will continue forward OK so I'm required to provide some personal information
before moving ahead with the purchase.
However there are two prices on the screen which continues to confuse me.
A price that includes savings and a price that doesn't include such savings.
Let's select show details and try to understand what is the difference between the two prices.
The price of the Model 3 version we ordered is sixty thousand five hundred dollars.
This is the purchase price.
However the people at Tesla wanted to show us the following.
The federal tax credit which is still available is a potential saving of $7500 and they have also pointed
out that over the next six years we could expect a saving of four thousand three hundred dollars related
to gas savings.
So this gives us a price after estimated savings of forty eight thousand seven hundred dollars.
The components that had to be considered were to federal tax credit and gas savings.
The message we receive is the following.
The True Cost of Ownership of Tesla Model 3 is different than the cash price you pay at checkout.
However there is one issue with this calculation.
Actually people buying a Model 3 today will have a cash outflow of sixty thousand five hundred dollars
and even if they spend less on fuel thats only compared to what they would have spent owning a fossil
fuel car.
At the same time it is understandable that Tesla is eager to show the benefits of their product hand
signals such as savings potential.
But considering prices after estimated savings can be a bit deceiving.
Buying a Tesla is a bit more expensive than it actually sounds at first glance this isn't necessarily
a bad thing for the company.
Its premium image and differentiation strategy is strengthened by a slightly more expensive pricing.
After all premium pricing coupled with a loyal brand following is what contributed to Apple's ascent
as the world's most valuable company.