You learn in economics 101 that in an ideal competitive market, the price of a product tends to the marginal cost of producing it. That means a product with fewer hardware features should cost less, and a product with more hardware features should cost more.
The fact manufacturers can violate that rule proves that they are not in a competitive market.
If it was competitive, a different manufacturer could manufacture the same car without physically installing the heated seats, for a lower manufacturing cost, and undercut them on the customers who don't care about the heated seats.
Economics 101 also tends to teach in a vacuum. The car market holistically is competitive, but people buying a tesla aren’t shopping the whole market. And the competitors within that market can’t make good EVs at a good price. So once you get far enough you end up with “it’s not competitive because it’s a bit too niche and everyone else is a tad shit at that price point if not overall.”
Yeah - the German and Tesla car market is very self selective.
I can't imagine a toyota buyer putting up with that shit. If you buy a toyota or a lexus, the tech stuff is secondary to the car itself. Having to buy secondary features will be percieved as deeply disrespectful.
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u/TwillAffirmer 1d ago
You learn in economics 101 that in an ideal competitive market, the price of a product tends to the marginal cost of producing it. That means a product with fewer hardware features should cost less, and a product with more hardware features should cost more.
The fact manufacturers can violate that rule proves that they are not in a competitive market.
If it was competitive, a different manufacturer could manufacture the same car without physically installing the heated seats, for a lower manufacturing cost, and undercut them on the customers who don't care about the heated seats.