Having a Tesla sounds pretty cool, in theory, right? Everyone wants to drive around in a sports car and show off to friends. But these cars come at a cost, and sometimes the cost is s little too high for most people’s liking.
Tesla is so expensive because lithium batteries are very costly. Tesla also makes use of advanced software and hardware technology that can often cost a lot; there is also a high import tax on Tesla for a lot of countries. Tesla provides its customers with advanced technology such as inbuilt infotainment systems like google maps, arcade games, youtube, Netflix, Spotify, and so on.
The company invests a lot in its growth and wants to make a profit thus, and the prices are high.
If you want to learn more about the high cost of tesla and whether or not it’s a worthwhile investment, keep reading.
What Is The History Of Tesla?
Tesla was founded in 2003 by a group of engineers who wanted to revolutionize the world of automobiles by introducing electric cars that were fun, efficient, and easy to drive. Initially, the company was founded by two men, Eberhard and Tarpenning, and it was later acquired by Elon Musk for 6.35 million dollars.
The name Tesla Motors was also bought by musk for 75000 dollars.
What Does Tesla Do?
Tesla is an automobile and electronics company that designs, manufactures, leases, and sells these devices. The company produces and sells the Model Y, Model 3, Model X, Model S, Cybertruck, Tesla Semi, and Tesla Roadster vehicles.
It is situated in California but has 438 Tesla motor stores worldwide with over 100 service centers.
What Is The Price Range For Tesla?
The Tesla products of 2022 have prices ranging from 45,000 – 130,000 dollars, and this is before taxes and incentives. Any specific additional options would cost more. The cheapest model is model 3, which costs 48,190 dollars, to be exact.
The model lineup includes model 3, model X, model Y, and model S.
What Factors Make Tesla So Expensive?
The high cost of Tesla is not just the result of its prominent brand name, even though that is one of the factors contributing to it. But there are several other reasons why Tesla is often as expensive as it is.
This video will give you answers.
Tesla Uses Very Advanced Technology
Tesla has exclusive superchargers and is the only chargers that can get you across a cross-country trip. This is just one example of the advanced tech that Tesla uses. A lot of research and development goes into the development of the Tesla battery, which is one of the vehicle’s most expensive components.
Tesla also designs and manufactures its own computers that are a part of every car. These computers have tech their own GPU system and provide infotainment services such as Spotify, Netflix, youtube, etc. Tesla also designs and makes its own AC and battery packs.
There Is A High Import Tax On Tesla
Tesla has only two factories. One in China and one in the United States of America. But the one in china only produces two models of the car, the Tesla Model 3 and Model Y. THe rest of the models are manufactured in the US and need to be imported worldwide.
Different countries have different import rates. The import rate is 29% in Germany and 100% in India. This adds to the cost of the car.
The Self-Driving Technology Can Be Expensive
Self-driving automation costs more than manual. The inbuilt computer system costs alot, and the development and research that goes behind creating the self-driving tech are also quite expensive.
Even the experts that are hired to work on the development of this tech are highly qualified people who require high salaries.
There Is A High Demand For Tesla
Despite its high prices, Tesla is very much in demand. It is trendy and advanced, so people want to buy it. There was a waitlist for Tesla products back in 2021. Tesla also had to include more affordable options such as Model 3.
Tesla does not have much competition in the electronic car industry. Its competitors, such as Ford and General Motors, have so far been hesitant in producing these cars because of the high cost. So the monopoly on the market allows them to keep their prices high.
Tesla Has The Safest Cars In The World
This adds to their high demand and high cost. Because the development of highly safe tech requires a lot of research and funding, the company is incentivized to keep its prices high, especially because they offer excellent services in return. Every Tesla Car has a 5-star rating from multiple global governments regarding safety.
The Car Offers Unique Features To The Customers
Each Tesla car has a glass roof that is designed to protect the passengers from harmful ultraviolet rays of the sun. For the greater comfort of the passengers, the seats are also heated. In addition to this, tesla comes with power-folding and heated mirrors. These advancements add to the experience of driving a Tesla and the cost.
The Company Needs To Pay Its Employees
Tesla has around 99,290 employees that they need to pay for their services. The engineers are paid highly in the company, with annual pay of 147,275 Dollars. This, coupled with the cost of hiring factory workers and servicemen, means that Tesla needs to put a high price on its products to make a profit.
The Bottom Line
There is no denying the fact that Tesla is one of the most expensive companies out there. But there are reasons for its high cost. The company charges its customers for its services, which require a lot of research to develop. Most of the technology used is also very advanced, which, coupled with import taxes, results in a high cost.
Whether or not you want to invest as much in a vehicle is up to you, but the services are often worth the price.
