TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker or making a Paypal contribution here: paypal.me/SupportTMC

Future Model S Pricing

Discussion in 'Model S: Ordering, Production, Delivery' started by smokeyskid, Sep 9, 2015.

  1. smokeyskid

    smokeyskid New Member

    Joined:
    Sep 9, 2015
    Messages:
    1
    Location:
    Croton on Hudson, New York
    Hi. New here, but considering a Model S. Tesla has said that a large portion of an electric car's price is in the battery. The Model 3 will have a lower price point, made possible by economies of scale from the gigafactory. Should we therefore expect reductions in the price of a Model S in the future when the economies of scale of the gigafactory kick in? Thanks for any thoughts on this and sorry if this question has already been addressed.
     
  2. NEWDL

    NEWDL R#350 R#1323 Sig23 8136

    Joined:
    Jan 5, 2009
    Messages:
    473
    Location:
    NE OHIO
    I would expect larger margins for Tesla but not lower prices.

    Nothing to gain by lowering an existing products price point with other products in place lower in cost.
     
  3. Max*

    Max* Autopilot != Autonomous

    Joined:
    Apr 8, 2015
    Messages:
    4,887
    Location:
    NoVa
    I expect Tesla to keep margins the same, and take the extra money they get from reducing the cost of the battery and apply it to refining the interior and truly blowing the other $70k cars out of the water (with both interior/exterior/drive-train/etc.)
     
  4. MartinAustin

    MartinAustin Active Member

    Joined:
    Jul 21, 2013
    Messages:
    1,449
    Location:
    Austin, Texas USA
    As a TSLA stockholder I've often spent time thinking on this subject.

    The Model S/X platform will always start in the $70K range, it won't fall (and frankly, it may not rise that much either). Inflation will make sure this price range becomes more affordable in real terms.

    Check here for early pricing -
    2013 Model S Price Increase | Tesla Motors

    To quote the Westegg Inflation Calculator, "What cost $77,400 in 2009 would cost $85,199.20 in 2014."

    Today's S85 RWD has power folding mirrors, parking sensors, maps/navigation/traffic, automatic emergency braking, lane departure warning, autopilot hardware, LTE internet connection, rear parcel shelf, electromagnetic brakes, 8-year infinite mile powertrain warranty and upgraded "properly placed" column stalks included, none of which were standard in 2012. And it costs $80,000.

    So if you look at the price of a new S85 RWD car right now, it costs over $5K less in real terms than it S85 did in 2009-2012, due to inflation, and has a ton more features!

    Tesla will use the Model S/X platform to debut new cutting-edge features that are physically more expensive to implement - for example, 110kWh battery, 120kWh battery etc., state-of-the-art autonomous driving features, new paint techniques, high power motors, extra travel suspension for off-road, motorised frunklid, and so on. (I am dreaming up most of this)

    The other product lines in lower price points will gain these features once they become available at those prices, or when Tesla feels that the Model S/X product line has enjoyed them exclusively for enough time. The Model S/X line will always remain the pinnacle of the product line, so that they can charge the most for them and enjoy a high profit margin. In terms of sales numbers, Model S+X won't rival the lower-priced Tesla offering, but that isn't Tesla's concern - as their main goal is to reduce carbon emissions of all cars to zero... doesn't matter if they take a cheap gasoline car off the road, or an expensive one - as long as it's off the road the job is done.

    Expect a cheaper Tesla car some years after Model 3 - perhaps, starting at the $20,000 price point? Also personal use trucks and then a move into commercial vehicles... but I think the Model S/X will stay in that $70K-$80K range for a long time.
     
  5. Saghost

    Saghost Active Member

    Joined:
    Oct 9, 2013
    Messages:
    3,038
    Location:
    Delaware
    I'm with Martin - I think Tesla will follow the Apple model and hold on to their existing price points but add more features as cost drops - bigger batteries, more tech goodies.
     
  6. Cyclone

    Cyclone Active Member

    Joined:
    Jan 12, 2015
    Messages:
    4,398
    Location:
    Charlotte, NC
    This and this...

     

Share This Page