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Tesla needs a stripped down economy version of the X ASAP

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I think that Tesla needs to advertise a stripped down family version of the X very soon if they want to keep customers. They need cloth seats and folding basic rear seats. Maybe rear wheel drive only too to help keep the cost down.
 
I disagree.

Tesla needs high profits per vehicle, and to make as much money as possible while production is ramping. And just as we've seen buyers for whom Model S is by far the most expensive car they've ever purchased, I predict we'll see buyers for whom Model X is the most expensive SUV they've ever purchased. The utility of a big SUV without the guilt or cost of running under 15 MPG.

We all want to be able to afford Teslas, but just as Porsche is the most profitable part of VW (and probably more so moving forward), moving mainstream right now is probably not in the best interests of Tesla long term.
 
[I was typing while smorg was and we said pretty similar things]

There are many, many people that would appreciate that - me included.

However, as long as they can sell all they can make, it makes more sense for them to sell the fully-loaded, higher-profit models (and then plow that money in to Model 3 development). I am sure as they work through the backlog they will start adding some lower-cost options like a smaller battery. Right now they have a pretty big backlog so it might take a while, unfortunately.
 
I think that Tesla needs to advertise a stripped down family version of the X very soon if they want to keep customers. They need cloth seats and folding basic rear seats. Maybe rear wheel drive only too to help keep the cost down.
I have to agree with smorgasbord and ChadS. Much as I'd love a cheaper Model X, I see the logic in first satisfying the demand for the premium version. Signatures first, fully loaded - highest revenue, highest profit, best way to recoup R&D costs and generate revenue. Regular 90D after that. 75D (or whatever) after that. Maximize profits and owner experience while you're production-constrained and demand greatly exceeds supply. Then when that demand softens a bit, start offering the "entry-level" versions. This is not a Tesla thing, but simply makes good business sense.

When I started reading about the Toyota Highlander Hybrid in 2004/2005, the first 7-seater hybrid SUV, I HAD TO HAVE IT. I considered a Prius but it didn't have enough seating capacity to meet my needs. Many Toyota dealers were charging a $2500 to $3000 premium over retail just to put you on a list to get one. *THAT* was a bad business practice and soured my opinion of those dealers. Prestige Toyota across the bridge in NJ was selling it for no premium above list, and expected to have a lot of them so they got my business. But in order to get one of the first 20, I had to get the fully loaded "Limited" model, with all the options. I could have gotten a more stripped down version, but Toyota didn't start shipping those until much later.

Still driving it today. This thing not only lacks Bluetooth, it doesn't even have a line input on the stereo or a single USB port! I play Pandora and Internet radio on my phone through a groovy high-tech cassette adapter. But am I ponying up for the Model X 90D? Yes, indeedy. It's got USB ports! Bluetooth! Maybe even built-in Internet! 21st Century, here I come!
 
I think that Tesla needs to advertise a stripped down family version of the X very soon if they want to keep customers. They need cloth seats and folding basic rear seats. Maybe rear wheel drive only too to help keep the cost down.
Why would they do that? Ordering a Model X now means delivery in late 2016.

Advertising a cheaper version at this point would just frustrate people, since they will have to wait a year to get the car. Once production has caught up, they can introduce lower cost models. and after that they can start advertising if necessary.
 
They have a production backlog of 20-30K vehicles now. Probably best to whittle that down before advertising lower cost models.

You have to be careful. That production backlog includes a huge number of people that will probably won't get it until a lower cost version is available. Just because somebody put down a $5000 deposit doesn't mean they want a $120K version. I expect when they open up configuration for general production they will announce all trims, just like with the S. However, they will actually build the higher end ones first.
 
Elon has already said that the stripped down version of the X is at least 12 months out.
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Total +1 dude, great example. +1 to Smorg and ChadS too. Tesla needs as much positive cash flow as possible to build the gigafactory and conduct hopefully what will be far less R&D for the Model 3 (far far less, unless they are making a coupe and station wagon).

I have to agree with smorgasbord and ChadS. Much as I'd love a cheaper Model X, I see the logic in first satisfying the demand for the premium version. Signatures first, fully loaded - highest revenue, highest profit, best way to recoup R&D costs and generate revenue. Regular 90D after that. 75D (or whatever) after that. Maximize profits and owner experience while you're production-constrained and demand greatly exceeds supply. Then when that demand softens a bit, start offering the "entry-level" versions. This is not a Tesla thing, but simply makes good business sense.

When I started reading about the Toyota Highlander Hybrid in 2004/2005, the first 7-seater hybrid SUV, I HAD TO HAVE IT. I considered a Prius but it didn't have enough seating capacity to meet my needs. Many Toyota dealers were charging a $2500 to $3000 premium over retail just to put you on a list to get one. *THAT* was a bad business practice and soured my opinion of those dealers. Prestige Toyota across the bridge in NJ was selling it for no premium above list, and expected to have a lot of them so they got my business. But in order to get one of the first 20, I had to get the fully loaded "Limited" model, with all the options. I could have gotten a more stripped down version, but Toyota didn't start shipping those until much later.

Still driving it today. This thing not only lacks Bluetooth, it doesn't even have a line input on the stereo or a single USB port! I play Pandora and Internet radio on my phone through a groovy high-tech cassette adapter. But am I ponying up for the Model X 90D? Yes, indeedy. It's got USB ports! Bluetooth! Maybe even built-in Internet! 21st Century, here I come!
 
Total +1 dude, great example. +1 to Smorg and ChadS too. Tesla needs as much positive cash flow as possible to build the gigafactory and conduct hopefully what will be far less R&D for the Model 3 (far far less, unless they are making a coupe and station wagon).


If Tesla is able to product 100K of them today they would cover all bases but as it is now the smartest thing for them to do is to cover the highest margin ones first. That's what pretty much any car makers in this enviable position would do. Check out the hot selling Mecan now. Porsche is only selling S and turbo versions in the US now. You have to wait probably a year or more if you want the base version. Porsche did exactly the same thing when it first introduced the new Cayenne and Cayman models before. So it's either bite the bullet and pay more or wait if you don't want to spend now.
 
Tesla is still battery constrained.

With the same amount of batteries you can build 7 X90s or 9 X70s. Depending on pricing that might just mean a better margin for Tesla.

All of this will change as soon as the Gigafactory supplies enough batteries to go around. When will that be? Certainly another year or so. The ramp up of the GF will be needed for stationary storage backlog as well as car backlog.

Also I see a market for an even more expensive X110. Probably will also be released when battery supply is no longer tight plus battery technology has advanced some.
 
I'd prefer an X that

• lacks the "work of art" second-row seats but rather just plain utilitarian seats that FOLD FLAT

• lacks Falcon Wing doors, just plain utilitarian normal doors thank you

• lacks the silly "driver's door valet" or whatever it's called, that opens as you approach, and closes once you're inside

• lacks auto-pilot functionality, but instead just has sensors galore to help driver stay aware of 360-degree situation

• lacks the crazy long glass windshield, instead has normal windshield of Model S

• offers Model S-style sunroof option

• offers a sturdy, robust roof rack solution

That'd do it for me. A real, capable SUV that's more SUV than sport limo for Liam-Neeson-in-Taken types driving celebs around Beverly Hills.
 
I'd prefer an X that

• lacks the "work of art" second-row seats but rather just plain utilitarian seats that FOLD FLAT

• lacks Falcon Wing doors, just plain utilitarian normal doors thank you

• lacks the silly "driver's door valet" or whatever it's called, that opens as you approach, and closes once you're inside

• lacks auto-pilot functionality, but instead just has sensors galore to help driver stay aware of 360-degree situation

• lacks the crazy long glass windshield, instead has normal windshield of Model S

• offers Model S-style sunroof option

• offers a sturdy, robust roof rack solution

That'd do it for me. A real, capable SUV that's more SUV than sport limo for Liam-Neeson-in-Taken types driving celebs around Beverly Hills.

Sounds like you are qualified for some job openings at GM.
 
I'd prefer an X that

• lacks the "work of art" second-row seats but rather just plain utilitarian seats that FOLD FLAT

• lacks Falcon Wing doors, just plain utilitarian normal doors thank you

• lacks the silly "driver's door valet" or whatever it's called, that opens as you approach, and closes once you're inside

• lacks auto-pilot functionality, but instead just has sensors galore to help driver stay aware of 360-degree situation

• lacks the crazy long glass windshield, instead has normal windshield of Model S

• offers Model S-style sunroof option

• offers a sturdy, robust roof rack solution

That'd do it for me. A real, capable SUV that's more SUV than sport limo for Liam-Neeson-in-Taken types driving celebs around Beverly Hills.


Since a number of these were always part of the Model X, I wonder what you were expecting...Auto Pilot, Falcon Wings were always there. Elon always said he wanted a 2nd row that would highlight the design of the Model X (understanding that some want/require a fold flat option of a GM Suburban).

Back to the topic.... with the Model S P85D, Tesla realized that the Performance dual-motor was the preferred configuration, and Tesla exploited that preference by building on P85D initially and made the 85D available in February-March of the following year. This maximized Tesla profits (assuming the P85D was higher margin), it makes a lots of financial sense and cents.

I would not be surprised to see Tesla fill the Model X P90D models first, then the 90D configurations. That will take about 9-12 months for current reservation holders. The backlog will continue as it does on the Model S. With that reality, there is no logical reason for Tesla to produce a "cheaper" Model X in the near term. That is something manufacturers do as part of a transition strategy or to compete in the market place. Since there, as of now, is no parallel to the Model X (IMO), there is no reason for Tesla to produce a down-featured Model X.
 
...as long as they can sell all they can make, it makes more sense for them to sell the fully-loaded, higher-profit models (and then plow that money in to Model 3 development).
I agree completely, and that is obviously Tesla's plan. They will be spending the next year selling X's faster the. They can build them. There is no business reason for Tesla to offer a cheaper or "stripped down" X.
Elon tweeted yesterday that at some point there will be a smaller battery offered for the X (sounded like maybe a 75kWh, but not until they can work through the order backlog.