PRICE SENSTIVITY

Strategizing Tesla's Model 3 to cater to price-sensitive consumers while maintaining profitability.

Value Proposition Communication

Flexible Pricing Options:
Provide leasing and financing options to  Let's consider the savings over twenty years for an average
accommodate different financial situations EV owner compared to a gas-powered vehicle.
for purchasing a Model 3.
 Assuming an average annual mileage of 14,000 miles and a
fuel cost of $2.50 per gallon, with an average fuel efficiency
Limited-Time Promotional Events of 25 miles per gallon for the gas-powered vehicle and 3
Offer discounts and incentives during special miles per kWh for the EV. The calculation would be:
events to make the Model 3 more affordable
for price-sensitive buyers. Cost Components EV Petrol Car
Purchase Price $ 40,000.00 $ 35,000.00
ONE TIME COST $ 40,000.00 $ 35,000.00
Trade-In for Sustainability Program
Encourage trading in old vehicles for Insurance $ 1,600.00 $ 1,500.00
enhanced values toward a new Model 3, Maintenance / Repairs $ 500.00 $ 1,000.00
promoting sustainability and affordability. Fuel / Electricity $ 1,680.00 $ 2,100.00
Road Tax $ - $ 150.00
Depreciation $ 2,000.00 $ 3,000.00
Battery Recycling and Repurposing
TOTAL ANNUAL COST $ 5,780.00 $ 7,750.00
Program
Establish infrastructure, invest in technology, Tenure 20 years $ 1,15,600.00 $ 1,55,000.00
offer incentives, and collaborate to recycle Battery Replacement
and repurpose batteries effectively. cost $ 13,000.00 $ 6,000.00
/ Working cost
Source:Team Analysis , McKinsey, Deloitte, Bloomberg NEF, International Energy Agency, Electric Vehicle Outlook Total Cost $ 1,68,600.00 $ 1,96,000.00