Comment on Elon Musk reveals Tesla software-locked cheapest Model Y, offers 40-60 more miles of range

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ch00f@lemmy.world ⁨1⁩ ⁨month⁩ ago

Sure:

It’s cheaper to manufacture and maintain a single version of a product. It’s cheaper to ship and store a single version of a product. It’s also easier to adapt to quickly changing market needs if you don’t need to spend six months spinning up a production line for a different version of a product.

Also, the existing market for low-range EVs might not be large enough to justify the expense of maintaining a separate line.

If there is competition in the space, it’s safe to assume that some portion of these savings are passed on to the customer to better edge out competitors over price.

If you want to be very charitable: wealthier people who can afford the full-range version are partially subsidizing the lower range (tighter margin) version for more budget-conscious consumers.

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