Strategy Lab

EV Strategy & 200-Mile Range Simulator

Historical Scenarios:
Commercially Viable: $109,000 MSRP easily absorbs $53,000 battery pack with healthy positive gross margin.
Battery Pack Cost $53,000
Battery % of MSRP 48.6%
Estimated Highway Range 244 mi
Gross Margin per Unit +$21,000 (19.3%)
Vehicle Bill of Materials (BOM) & Margin Waterfall Total BOM: $88,000 | MSRP: $109,000
Tesla Clean-Slate Top-Down

Start at High End & Drive Down Cost

  • Pack Sizing: 53 - 85+ kWh for genuine 200-300+ mi highway freedom
  • Price Absorption: High MSRP ($100k+) pays for $50k+ early battery packs
  • Ecosystem: Dedicated high-speed Supercharging removes road-trip anxiety
  • Margin Engine: Positive unit margins fund R&D and Gigafactories for cheaper models
Early Legacy Compliance Approach

Sub-100mi Cheap City Car Trap

  • Pack Sizing: Cut down to 16-24 kWh to hit low price points (< $35k)
  • Margin Trap: $24k battery in $35k car creates negative unit margins
  • Usability Bottleneck: 70-80 mi real-world range confined cars to city commutes
  • Charging Neglect: 3.3-6.6 kW Level 2 took 6-8 hrs, making highway travel impossible
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