A Tesla Model 3 around 35000 is possible with 200 miles range

Thx Con! I'm looking forward to the debate!Here are the reasons why I think they will be able to do the seemingly impossibleReference: Model S with 70KWh battery and a starting price of $75,000.Argument 1: Less profitTesla currently has between 25% and 30% profit on each Model S it produces. The Model S is a low production volume car while Model 3 will be a high production volume car and therefor they can afford to have a lot less profit per car. For example 10% profit, this alone means lowering the price with $10,000.Argument 2: Model 3 car will be smaller, use cheaper materials and will be less luxuriousThe Model S is a big and heavy car and it has a relatively expensive aluminium body.The new model will be smaller in size, thus needing less materials and probably be made in steel to lower the costs.The new model will also be less luxurious, just like the BMW 3 is less luxurious then a BMW 7.Argument 3: Economies of scale for the car production processAs stated before, the Model S is produced in low volumes (35,000 cars in 2014).By 2020 Tesla aims to have scaled up it's factory to produce 500,000 cars.Argument 4: Gigafactory and a 50 KWh battery in stead of 70KWhThe most expensive part of an electric car with decent range, is ofcourse the battery. 1) The Model S with 70KWh battery has an EPA range of 240 miles. This means the car was using 290Wh / mile.Because the Model 3 will be smaller and lighter it will use less energy per mile. Let's estimate 15% less energy, this gives 245Wh / mile.To reach 200 miles, the car only needs a 50KWh battery. 2) Tesla is currently believed to get batteries from Panasonic with a cost of around $250 / KWh. [1]Battery prices have come down steadily for many years now, so by 2017 the price will be a bit lower by itself without any gigafactory from Tesla.Beyond this, the Tesla gigafactory will lower prices more/faster because of a much better integration of battery construction and economies of scale (the gigafactory alone will produce as much KWh's of battery as the whole world produced in 2013 [2]).Elon Musk said the price of batteries will be reduced at least 30% [2]. Using this 30% estimate, the battery price will be $175 / KWh.Using these numbers, the Model S battery price is 70 KWh * $ 250 / KWh = $17,500. The Model 3 battery price comes down to 50 KWh * $ 175 / KWh = $8,750. Compare to other cars in the market In stead of only comparing with the Model S, it is usefull to also compare with other manufacturers.By using the $35,000 as the total price for the Model 3 and $8,750 for the battery, there is $26,250 left for the remainder of the car and profits.I have chosen 2 examples to compare with:1) A very popular car: Toyota Camry is sold for $23,000 [3]2) Tesla's goal for the Model 3: BMW 3 series is sold for $33,000 [4]Clearly a Toyota Camry glider is lower then $23,000 and thus also lower then $26,250 making a Camry EV with 200 mile range possible.As for the BMW 3, if we use the same profit margin for Tesla and BMW, then the question is if the production price for BMW's glider is $6,750 ($33,000 - $26,250) less then the production price of the full car. At this point I dont have any sources but I'm pretty sure this is the case. because a BMW 3 has lots of parts that the Tesla does not need.I'm ofcourse talking about the heavy and complicated ICE engine and gearbox, transmission system, engine cooling and lubricating systems to prevent too much heat in many moving parts, turbo's, filters, exhaust, ... While the electric engine is really basic stuff (static magnets and electric magnets and some housing), generates a lot less heat, has only 1 gear and is almost directly connected to the wheels. References[1]: http://insideevs.com...[2]: http://www.teslamotors.com...[3]: http://www.msn.com...[4]: http://www.msn.com...