That's because the internal electric connectors have to carry much less power so they are less robust, and the thinner, shorter cable saved some expense too. While his model does have the smart-charging software built into it and the cool glass cover probably added some extra expense, even with those improvements it probably costs Tesla less to manufacture than the previous high-powered wall connector. Tesla placed the same $500 price tag on the Gen 3 model as they did for Gen 2 wall connector.
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