Debunking the Myth that Tesla is a Luxury Car Only

“Lucky you can afford the luxury of a Tesla,” laughed my friend as we parted ways in the parking lot after meeting for dinner last week. She gave me something to think about as I drove home that evening. I wondered how Tesla and EVs earned the reputation of being expensive luxury cars.

How the Myth Started

One of the main reasons for this myth is that Tesla's early EVs were luxury choices such as the original Roadster and the Model S. 

Tesla’s famous Model S came at a high price tag by 2012 standards. Tesla attracted wealthy buyers who were early EV adopters. Their belief in Tesla and Elon Musk helped build some financial backing for Tesla. This helped pave the way for mass-produced cars to come. 

My family wanted a Model S in 2012 but found it too costly. At the time, we looked forward to Tesla making a car for the masses. Elon Musk kept his word and built the Model 3, a car our family could afford!

Debunking the Myth: Building Cars at Scale for Less 

When the Model 3 and later the Model Y were released by Tesla, the goal was always to build these cars for less. 

Tesla did this at scale using manufacturing methods that allowed more cars to be built at a lower cost. 

Model Y, for example, is built in 4 locations around the world: at factories in Austin, Fremont, Berlin, and China. All four factories use rear casting, saving significant money and time building the Model Y. 

An Automotive Expert Praises Tesla

Sandy Munro, a renowned automotive industry expert, praised Tesla's use of single-piece rear casting in the Model Y. This innovative design replaces the 70 parts previously used in the Model Y with just one large casting part.

This change simplifies the build process, reduces weight, improves noise, vibration, and harshness (NVH), and increases production efficiency. It's a game-changer in the automotive industry, as it pushes the limits of vehicle structural engineering and manufacturing.

This is just one of the ways Tesla achieved its goal of making cars at a lower cost. At the time of this article, buying a Model Y in Texas costs only $42,770, and a Model 3 costs $35,870.

As technology has advanced and production has increased, EV costs have decreased significantly. Most people are still unaware of this. Tesla owner Jeff Lutz said, 

“I have close relatives in town from California. They’re looking for a new car and want an EV. Both are very intelligent people with the latest computers, mobile phones, and social media including X. They didn’t even attempt to navigate to the Tesla website because they thought “they all start at $50K+". No idea about new starting prices in the ’30s, incentives bringing down prices into the ’20s, gas savings net of charging costs, etc… The good news is we’re close to ordering their first Tesla! A sample size of 1 here but not the first time I’ve encountered this with w/friends/family… who knows how many more there are? I’m not proposing any silver bullet solutions as I’m not an ad exec, but describing a problem I’ve encountered now on multiple occasions…”

Reference: https://x.com/thejefflutz/status/1733893167739437529?s=46

Premium Luxury or Affordable Quality?

Luckily we have affordable options for our next vehicle purchase. Tesla vehicles and many other EVs are within reach. For those who still want to experience luxury, there are great options for that as well. For example, you can read about the luxury Porsche Taycan in “Does Porsche Offer an Extended Warranty for Their Electric Vehicles?”

Tesla will always offer a premium, luxury experience. The Foundation Edition Cybertruck and the Plaid Model X and S are three delightful examples of this. 

My thoughts

This myth that all Tesla cars are unaffordable luxuries is untrue and worth debunking because when people believe it, they feel pressured into purchasing another combustion car. 

I encourage people to break the cycle of trading their gasoline car in for an updated version of the one they already own and instead trade in their old gas car to Tesla and make the switch. 

*There are federal and state incentives available that can reduce the cost of purchasing an EV even further.