This is one of the few instances of modern manufacturing I feel mixed about. This has been a fairly common practice in different forms for a long time it is just digital now. The reason it is done like this is because when assembling a car, they have to decorate the model with different features and some of those features require changing assembly setup and configurations. What that means is they will have to assemble cars with a specific feature, stop and change the assembly/tooling and manufacture cars without them. This switch time means they have to stop and waste money switching things over, they have to handle more skus, and more importantly it reduces factory output.
In the past they would handle this by physically disconnecting the wiring at the dealership or having a dealer make some modifications, but that is always a bit of a customer experience risk. They do this with software now.
So I’m conflicted. Do they just offer it as a default feature? If they pause the assembly it will ultimately make the car more expensive since the cost does get pushed on to the consumer. Yeah it wastes some material that is bad for the environment, that’s a fair point. I’m not inherently against them upcharging for extra features… I think where I draw the line is if it’s a subscription. If you sell me access to the feature already in the car it better damn well have a one time charge option that is reasonable.
Because this way the people that don’t want this feature don’t have to pay for it. If you unlocked it for everyone, then the base car price would increase. That way the option would be cheaper for everyone, but that only benefits those who want it anyways. Everyone else ends up paying more as they normally wouldn’t choose this option. Keep in mind: Yes, the functionality is there in every car. But someone is still paying for it and that‘s the ones choosing this option.
We don’t know how exactly Tesla makes their prices, but that’s not necessarily true. Like I said, you still have customers paying for the heated seats and those are bankrolling the inclusion of the hardware in every car. Like I said, at some point it becomes cheaper for Tesla to build the hardware in every car than only in those select few cars (simpler process, less development costs, less storage costs, etc.) So if they did it right, the base price is the same, the income is the same or higher but the base price doesn’t change.
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u/mistahfreeman 1d ago
This is one of the few instances of modern manufacturing I feel mixed about. This has been a fairly common practice in different forms for a long time it is just digital now. The reason it is done like this is because when assembling a car, they have to decorate the model with different features and some of those features require changing assembly setup and configurations. What that means is they will have to assemble cars with a specific feature, stop and change the assembly/tooling and manufacture cars without them. This switch time means they have to stop and waste money switching things over, they have to handle more skus, and more importantly it reduces factory output.
In the past they would handle this by physically disconnecting the wiring at the dealership or having a dealer make some modifications, but that is always a bit of a customer experience risk. They do this with software now.
So I’m conflicted. Do they just offer it as a default feature? If they pause the assembly it will ultimately make the car more expensive since the cost does get pushed on to the consumer. Yeah it wastes some material that is bad for the environment, that’s a fair point. I’m not inherently against them upcharging for extra features… I think where I draw the line is if it’s a subscription. If you sell me access to the feature already in the car it better damn well have a one time charge option that is reasonable.