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20% price increase

Discussion in 'Model S' started by Testwa, Feb 16, 2017.

  1. Testwa

    Testwa Member

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    Just noticed a hefty price increase in Germany. Model S is about 3000 Euro more expensive than some days ago. But especially the options are now 10 to 20% more expensive. Color white or red now 2000 Euro (before 1700, 18% price increase), sunroof 2600 (before 2200, 18%), Autopilot 6600 (5500, 20%), Premium package 4500 (3900, 15%), air suspension 3200 (2800). So fully equipped adds up to another 3000 Euro price adder. So rough and tough 6000 Euro price increase for a 100,000 Euro car.
     
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  2. oktane

    oktane Active Member

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    Wouldn't that then imply only a 6% price increase?
     
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  3. Testwa

    Testwa Member

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    Sure, headline was referring to one of the options :)
     
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  4. kort677

    kort677 Active Member

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    isn't the lower value of the euro the reason for the price increase?
     
  5. croman

    croman Active Member

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    Tesla has been up front that currency fluctuations affect pricing. Nothing out of the ordinary.
     
  6. Kenriko

    Kenriko Member

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    Blame your economy and currency exchange rates.
     
  7. ev-now

    ev-now Member

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    52 week variation exceeds 6% - no idea how often they adjust prices. Presumably this affects the whole of Europe if it is currency related - except may be those UK rebels who should be worse off due to a more precipitous change in the value of sterling over that period.
     
  8. Testwa

    Testwa Member

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    It's true the Euro is a little bit weaker, like 3% compared to 1 year ago.
    So increasing car price by about 4% would compensate for that, but why increasing sunroof and color by around 20% but the 21" wheels only by 2% (5100 vs 5000 Euro) and the fixed glas roof option hasn't changed at all?
     
  9. John5396

    John5396 Member

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    Pricing for sunroof was raised in USA when the new option of glass roof was added a couple of months back.
     
  10. azred

    azred Member

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    6% CNN math = 20% alternative math, but please don't leak this info to anyone else.
     
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  11. AmpedRealtor

    AmpedRealtor Banned

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    Blame the Brits...
     
  12. HyperMiler

    HyperMiler Member

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    Still not fit for the Autobahn anyway...
     
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  13. ev-now

    ev-now Member

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    The 1 year exchange rate is only relevant if they last reviewed price a year ago. Supplier prices obviously affect the various components, but as Tesla is not a cost+ supplier of product ultimately they are likely looking at what the market is perceived to bear on any given option, as well as what it costs them to offer it.

    They play with pricing here on a fairly regular basis, and from the outside it often looks arbitrary. It is simply to recover increased costs, increase profit or encourage or discourage behaviors. Remember the cost to Tesla of a given option is not just the original cost, but the cost of service and warranty claim too. If that is too high, they simply remove the option - but otherwise they may be factoring (their) cost of ownership of that option into revised pricing.
     
  14. Drekar

    Drekar Member

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    #14 Drekar, Feb 16, 2017
    Last edited: Feb 16, 2017
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  15. j2cc

    j2cc Member

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    Testwa, there is something going wrong with Germany...as prices increase by 4 or 5% on French or Belgium tesla design studio. For example prep package is now 4000 instead of 3900€...but not 4500€ like in your country. I didn't check all euro zone countries but Germany has definitively a massive price increase compared to other euro countries. wierd !
     
  16. j2cc

    j2cc Member

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    Just check some other countries
    France, Spain, Belgium :4 or 5%
    Italie : a bit more
    Germany and Austria : massive increase ! Up to now prices were the same in all euro zone ...that is new these prices differences...
     
  17. kort677

    kort677 Active Member

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  18. googlepeakoil

    googlepeakoil Member

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    Not totally. The Brits got their own price increases related to the £/$ exchange rate. The £ fell from a "pre-Brexit" (1 day before) high of $1.50 / £1 to a low of $1.15 / £1. A massive 25%+ drop. The $ to the Euro I don't think has changed much. I imagine Tesla cut the base price in Germany to get below the 70,000Euro tax mentioned elsewhere on this thread - but then upped the options prices.
     
  19. HyperMiler

    HyperMiler Member

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    Did the British prices go up by 25%. Tesla addressed the German subsidy issue by a new definition of base models, without decreasing any price other than that of a (very) naked base model, still priced higher than in the US.

    There is no extended warranty agreement and now this price increase. Behavior like this will make it easy for the European car makers to win back most of the E car business in Europe.

    The way our driving is (shorter distances, faster, more complex environments), autonomous is not such a big topic here I would say. As a journalist put it recently: "watching traffic keeps me plenty busy, and I do not need the burden of watching an immature autopilot on top of that... ."

    The better propulsion systems will win, and we have not seen much innovation there in the last 4 years.

    For many, the defining questions are:
    - Can you go fast (100 Mph) over significant distances?
    - Does the service and repair system scale?
    - Does the charging system scale?
    - Am I getting a fair price for my purchase?
    - Will that car track and report my every personal and vehicular motion into the computer of a billionaire friendly to and subject to the jurisdiction of a highly contested American presidency?

    It will be interesting to see this develop.
     
  20. Testwa

    Testwa Member

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    The trick Tesla did in Germany is as follows:
    They took the base MS60, reduced it by a package containing navigation, electric mirrors, rearview camera, internet radio, ... and got below the maximum limit for EV subsidies in Germany which is 60,000 Euro before tax. Now the software package costs 8000 Euro (before it was 5000 Euro). On one hand it contains pretty relevant stuff and on the other hand you have to get that package if you want to go for any other option. So if you want to get a base MS60 not in standard black, you have to take the software package as well. Meaning, basically almost no one will just get the basic MS60 without anything.

    So the price increase for options are not needed to compensate for that. They defined a specific package for Germany compensating exactly that.

    So a very smart trick to bypass this stupid German regulation ... at least for Model S. For Model X there is no such solution ... yet.
     

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