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Originally Posted by Efthreeoh
There are literally thousands of articles on the web in car magazines, financial magazines, and business magazines discussing if the Model 3 was/is going to affect sales of the Chevy Bolt and vice versa, so the two are market competitors in many people's eyes. The argument being they are the first two EVs that offer plus-200-mile range at a $35K price target.
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And if those were the first two ICE vehicles on the market, you’d see the same type of editorial. That fact does not rewrite the book on vehicle segmentation. Competition is exciting and makes for good headlines, and Elon knows how to bring attention to his company with hyperbole and fanfare. So it’s no surprise that this is being played up and is commanding a lot of print.
It is undeniable that some subset of the population is willing, today, to shop outside the vehicle segment they would otherwise in order to get a vehicle with electric propulsion. Yet, it is neither Tesla’s long term intention to, nor does their long term success depend on being able to, woo the entire automotive buying population from its preferred basic transportation into boutique sport sedans and SUVs. Electric vehicles will ultimately come in a wide variety form factors and price points, many of which will be the same as those ICE vehicles come in today. Tesla will not cover all of them (though they may eventually cover the one the Bolt occupies) and neither will Chevrolet (though its parent, GM, essentially will I’d bet).
A $35k Model 3 may or may not materialize. I suspect it will, but that is neither here nor there. I am sure that model appeals to more of the population than does the $49k model that current holds the entry level spot in the lineup. But its lack of availability does not change the fact that the long range, premium models available today represent a good value to someone whose priority is a performance sport sedan and who are prepared to make the switch to electric.
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Economically it makes no sense to buy a $50K car to save $1,000/year in fuel cost.
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It makes no less sense than buying a $50k car to save no money on fuel at all. Yet a significant number of people do just that.