🔥 AWESOME! Elon Musk's SpaceX just LAUNCHED from Texas the Starship megarocket — its first-ever orbital test flight
The booster successfully SPLASHED DOWN in the Gulf of America 👏🏻
It's headed straight into orbit and is carrying Starlink V3 internet satellites
Many people have asked me "Why on Earth would Tesla sell a Cybercab for just $25,000? Shouldn't it be worth much more than that?"
What they're missing is that the sales price of the car is just the start. It makes sense to keep it low to maximize sales and recurring revenue.
By my estimates, a typical Cybercab could generate $250,000 - $500,000 in revenue for Tesla over its lifetime — and that's excluding revenue from charging and service.
At around $1.50 per mile, a 7 year lifespan for Cybercab, and 80,000 miles per year driven, Cybercab generates $504,000 in fares over its lifetime. In more lucrative urban markets where the price might be closer to $3 a mile, Cybercab lifetime revenues could exceed $1 million.
Assuming Tesla takes a 50% cut of fares off the top, that's $250,000 - $500,000 in fares. Add in the $25,000 price of Cybercab and Tesla generates $275,000 - $525,000 of revenue per Cybercab produced over 7 years. It's like a 72 month auto loan on a six figure car. Each of those little electric compact cars could generate more revenue for Tesla than a Rolls Royce.
You wouldn't want to charge $525,000 up front, because that would discourage people from buying the car. It makes much more sense to charge them $25k, get them invested in locked in, and then generate recurring revenue from fares, premium connectivity, maintenance, charging, accessories, and other recurring items.
Everything has two prices, the price you pay to get it and the price you pay to use it. If you just look at the former, Cybercab looks like Tesla's lowest price vehicle. But if you look at both, Cybercab will generate 5x - 10x more revenue for each unit produced than a Model 3 or Y does today.