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How does Tesla continue to sell Model S for 40-50K more than 3.?

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Nicer interior, larger car, more power. It's pretty simple car manufacturing economics.
With respect, the 3 has a much nicer interior, and only the P100D is slightly quicker 0-60 (but handles like a "boat" compared to the 3). The S is larger and has heating steering wheel, air/adjustable suspension (but reduces quality of handling), and auto-open trunk.
 
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With respect, the 3 has a much nicer interior, and only the P100D is slightly quicker 0-60 (but handles like a "boat" compared to the 3). The S is larger and has heating steering wheel, air/adjustable suspension (but reduces quality of handling), and auto-open trunk.

You think 2.2 seconds is only slightly quicker than 3.2? Ummmm...okay.
 
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You think 2.2 seconds is only slightly quicker than 3.2? Ummmm...okay.
True. But that's in "ludicrious" mode which is not to be used on a regular basis as it degrades the battery. Non-ludicrious is 2.9. And again, that's that's just 0-60. The actual driving experience, especially in twisties is much more satisfying for a peformance driver with the 3 than the S.

The 3 also has "track mode" which the S doesn't, making the driving in a closed track faster than the S. Finally, the ludicrous option may be coming to the 3, since it's just a software upgrade (the batteries on the 3 are newer/better than on the S).
 
Speaking for myself, I certainly was only trying to express that I agreed with the Original Poster (OP) point that there should be some other differentiation in the S/X for the price difference. I personally think the S, X and 3 target different markets, just like they do in other manufacturers product lines.

I think that Tesla (if its smart) will do more to differentiate the product lines, and / or reduce the price of the model S and X some.
 
The M3 and MS are very different cars in different categories that are strongly differentiated. The Model 3 is a noticeably smaller car than a Model S.

I wanted to buy a Model 3, but coming from BMW 750, Audi A8L and Mercedes (my last 3 cars), I became used to the size and paying $100K+ for a car. It was tough to think I could almost buy 2x Model 3s for what I was paying for my Model S, and I do wish I could have saved $45K.

In the end, however, it was the same reasoning why a BMW 7 series, and not a 5 series, an A8 and not an A6, etc.
 
With respect, the 3 has a much nicer interior
That's entirely subjective.

The 3 also has "track mode" which the S doesn't, making the driving in a closed track faster than the S. Finally, the ludicrous option may be coming to the 3, since it's just a software upgrade (the batteries on the 3 are newer/better than on the S).
1. The 3 is also a smaller and lighter car, which will always be better for handling. Guess what the overwhelming vast majority of people never even consider doing? Taking their car to the track. These are designed first as day-to-day commuting machines and fun stuff like Ludicrous Speed and Track Mode are added because the hardware supports it and people will pay for it.

2. Ludicrous is more than just a software upgrade and more than just the batteries. It's the motors (I don't know if the Model 3 motor can handle a significant amount more power), it's the wiring and high performance battery contacts that don't melt when that much amperage is shoved through them, it's a literal pyrotechnic fuse that blows itself up when there's too much current because that's the fastest way to save the rest of the car. There's been no indication that the Model 3 is expected to get a Ludicrous mode option, indeed the Performance version may already be using the battery to its maximum output (smaller pack has less available amperage than the larger S packs with older cells).
 
They are just totally different cars targeted towards different audiences. I have long been a fan of what Tesla is doing and have driven in a friend's S many times (I cannot remember the exact model designation but it is the insanely fast one -- P90D or P100D?). It is impressive in many ways. Two of my neighbors were fairly early adopters and have had them (Model S's) since 2013. And yet, I was never even remotely tempted by the car because it was just too, well, big. I have always been more of a sports sedan guy. The price of the S (although high) was not the issue for me so much as just not wanting anywhere near that much car. This is why I waited and bought the M3P+. Fully loaded it definitely is not an inexpensive car, but the size of the car and handling are what sold me...
 
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But OP has a point (to a point).

The interior of a model S is not appreciably nicer than a model 3 at this particular point, at least in my opinion. its just bigger, and the cost of the vehicle new does not match the level of "luxury" you get from those other brands. There is more to a vehicle than luxury, of course, but there should be some more differentiation in the interior for model S (and X) vehicles.

That’s my point. I own an S and I’ve test driven a 3. The interior of the 3 is just as nice and nearly as roomy. Other than the binnacle on the S (which I do like) The software and features are nearly identical. Larger size of the S is not always a selling point. LR 3 has similar range to S100D. Acceleration is great in both. AP and FSD will be the same. What else is there?

I think Tesla will have a hard time selling the S at the current price point in the future, especially when the Y with hatchback is available.
 
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The S still has things the 3 doesn't:
  • Larger
  • Hatchback
  • Biodefense HEPA air filtration
  • Air suspension
  • Instrument Cluster
  • Rear Facing Seats
  • More storage
  • Self-presenting door handles
  • AM Radio (I'm not sure it still has it.)
  • XM Radio
  • Faster AC charging (I think it is still available.)
  • Heated steering wheel
  • Cooled seats
  • Dynamic turning headlights
  • Passive entry fob
  • etc.
It is a different car, and some people prefer it even if it costs more than another car.


All good points. Just wonder if that’s enough to justify the really big price difference for many buyers.
 
For me it was very simple the Model 3 was not available and i have been driving a Model S Tesla for 2 years while you where waiting for your model 3.

but now in 2019 you make a good point they need to refresh the Model S to justify the price differential.

I still think the MS is a much better looking design ... M3 looks cheap to me ....people will pay for a better looking car ... same reason you bought a Tesla vs a Bolt or Leaf :)
 
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Had a P85D, then 2 3s (first RWD and now P3D). Other than the self-closing trunk I am not missing anything from the S. One colleague got the 3 when his P90D lease expired, and a second one is considering same move. And I really could not justify the 71k price hike (64k base price for P3D vs 135k base price for P100D).

For me, it was acceptable to spend so much money on the S when S was the only game in town, but certainly not when the 3 is so good.
 
I just switched from a model S to a model 3, and I regret it. The model 3 is just too loud, rattly and harsh to drive for me. I really miss the air suspension on the prior model S and smooth ride it provided. I'll probably trade-in to the refreshed model S when it becomes available. I guess I would also consider a model 3 with an air suspension depending on how it rode.

With regards to interior, I actually think the model 3 interior is nicer than the model S. I like the smaller size of the model 3 as well. It's ridiculous that it doesn't have a heated steering wheel or power close trunk.
 
Tesla needs to start making more refined/luxurious interior upgrades available for all their models.

This vegan-leather crap has got to go when you’re charging $100K+
My first Tesla had tan leather. My new one has the cream faux leather. The faux leather seems, to me, just like the real thing but much better quality. I’d take it over the real thing any day... even if it cost more. And that’s not an animal rights / vegan thing. The real leather started to wear much more quickly.
 
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That's entirely subjective.


1. The 3 is also a smaller and lighter car, which will always be better for handling. Guess what the overwhelming vast majority of people never even consider doing? Taking their car to the track. These are designed first as day-to-day commuting machines and fun stuff like Ludicrous Speed and Track Mode are added because the hardware supports it and people will pay for it.

2. Ludicrous is more than just a software upgrade and more than just the batteries. It's the motors (I don't know if the Model 3 motor can handle a significant amount more power), it's the wiring and high performance battery contacts that don't melt when that much amperage is shoved through them, it's a literal pyrotechnic fuse that blows itself up when there's too much current because that's the fastest way to save the rest of the car. There's been no indication that the Model 3 is expected to get a Ludicrous mode option, indeed the Performance version may already be using the battery to its maximum output (smaller pack has less available amperage than the larger S packs with older cells).

0. Of course it's subjective - most everything is. I favor a minimalist design (I'm from Germany, s fan of Bauhaus and my wife is a retired high-end interior designer - that's why. The S is much, much, too cluttered with many too many buttons, stalks and knobs .

1. Right, I agree the 3 is a better handling car. That was *my* point. However, it's not only because it's smaller (by the way, smaller does not always handle better than larger), but also the stiffness of the suspension, steering etc

And this handling is evident in normal day to day driving. I only metion Track Mode in response to the comment that the S is quicker/faster.

If one truly enjoys the experience of driving, the 3 will truly inspire you (especially the. AWD). You don't even need the Performance version for that. Many Americans mistake "speed" (especially 0-60) as the indicator of a "performance", when it's more about weight distribution, steering response, suspension etc. (In fact, I always keep the steering setting in Sport, even in long trips).

That's why s low-end Porsche 911 performs "better" than the highest end Mercedes S Class.

The S is like a Mercedes S Class and the 3 is like a Porsche. To your point, it's subjective - it depends what want. I like performance so for me.the 3 is an upgrade.


2. ??? You're making my point for me. Ludicrous is a software upgrade, not hardware. It stresses the hardware more, but enabling it is purely software. Anyway, you are correct that it involves more than the battery but also the motors, hence making my point for me... In the 3 both the motors and batteries are upgraded versions compared to the S.

So, if Tesla allows a ludicrous mode for the 3P it will be quicker than the SP100D, because of superior handling, batteries and motors, and lighter weight. However, 1) Tesla may not want to cannibalize their sales so that may not happen. 2) to be fair, when the S refresh happens this year, everything will change.

Anyway, most decisions we all make are based upon personal preferences (except the performance handling - that's objective), but that's what the OP posted about; the difference between the two.

My view is that the 3 is an upgrade from the S. It's like coming from a Cadillac to a BMW M3.
 
Price wise the Model 3 was always designed to be the better value. It is a high volume vehicle and is much less expensive to manufacture. It uses a steel/aluminum structure, while the S and X use the more advanced all aluminum (expensive) chassis.

Pricing has been set by Tesla to provide a full range of pricing, from $35,000 to $135,000 and everything in between. The Model 3 with all options is near the price of a Model S with no options. Something for everyone spread.

S and 3 have very different driving experiences. The 3 is small, nimble and efficient. The S is spectacurally beautiful and more impressive. It has more interior space and is especially more lux for the 2nd row passengers. It rides smoother, quieter and offers more luxury.
The hatch back design is remarkably space efficient, especially for carrying people and stuff. It has a larger frunk plus larger wheels, tires and brakes.

Model 3 is the sporty model. Model S takes it up to another level of Grand Touring.