For 1, pricing in these scenarios assumes a portfolio effect on the total cost of production for all units sold. Premium features are built into every car, which enables customers to enable them at a later date, but the cost isn’t passed on. Instead the premium feature is marked up to cover costs plus profit for all cars sold with that build. As mentioned elsewhere there are mass production efficiencies involved as well, reducing the unit cost for all cars as there aren’t N variants being built but a single mass production line that’s invariant. The residual costs are covered by the minority who buy the premium features for every unit, enabled or not, and it’s priced that way. This translates into overall cheaper cars for people without the feature enabled, and cars with a better resale value because those features can be still enabled in a secondary market sale. It also translates into cheaper cars for the premium car purchaser as well even though they subsidize the feature build in all cars enabled or not.