Why are Tesla Cars so Popular and Expensive?

Tesla, a US automaker and energy firm best known for its electric vehicles, features items that are unique, popular, and expensive. The cars contain a lot of characteristics that you won’t find in most other vehicles.

As any Electric vehicle owner knows, driving on electricity provides a lot of advantages that fossil cars don’t: almost immediate acceleration, one-pedal driving, and the convenience of charging at home rather than going to the gas station (and seldom visiting a repair shop).

These are offered by Tesla cars plus a slew of other features, some of which are game-changing improvements and others that are simply entertaining.

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When customers first see the interior of a Tesla, the large touchscreen that dominates the dashboard tends to catch their eye. The tablet-like user interface is used to control almost all vehicle functions.

Over-the-air upgrades are one of the many features that Tesla’s unified operating system provides. When Tesla introduced the feature, cell phones, software, and other products had been updating themselves online for years, but legacy automakers are only now starting to implement it—the Ford Mustang Mach-E and Porsche Taycan now offer some OTA updates, and other auto brands are planning to offer the feature on future models.

This is a crucial feature that can extend the life of each car and even solve problems without the need for a trip to the mechanic.

The innovations that have been developed so far are intended to make Teslas safer, more capable, more convenient, and cost-effective than traditional automobiles. However, fun is what sells cars, and Tesla has controlled that market as well.

Why Tesla Cars so expensive?


The most expensive component of these autos is the battery, which stores and uses electrical power. One of management’s key priorities has been to lower the cost of batteries per kilowatt-hour for its automobiles, and the company has made great progress in that direction.

Tesla’s battery prices, according to Forbes, have dropped from around $230 per kilowatt-hour in 2016 to $127 in 2019. Tesla’s battery costs are around 20% cheaper than the industry average due to the company’s increased volume. Battery technology is undergoing a lot of research and development, and the aim is that in a few years, the cost of battery power storage will be able to compete with the cost of gasoline or other fossil fuels.


The huge demand for Tesla automobiles is the key reason for its high price. Every month, it appears that the corporation is breaking new sales records. Despite the high demand, there is a production bottleneck, resulting in an increasing backlog of back ordered vehicles.

Tesla, unlike traditional auto businesses, lacks the production capability to meet current demand in a timely manner. Because current demand exceeds the current supply, basic economics predicts a price increase. Tesla appears to be bound by supply rather than demand.

Although Tesla cars are pricey, people still queue to acquire them probably because of their uniqueness and popularity and the fact that they keep on improving their technology and finding more ways to make their products available to everyone.

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