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Model S Price Increase discussion

Discussion in 'Model S: Ordering, Production, Delivery' started by Christian3, Aug 3, 2013.

  1. Christian3

    Christian3 Member

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    What do you guys think of the price increases? for me it added just under $12,000. Which I have chosen to put off ordering my vehicle until I can just cut a check in full and have no worries. Have any of you guys chosen to do the same? Are you jealous and upset that they made these options available; ready to get rid of yours and get the latest and greatest? (You Model S Owners now)! Really interested in what you guys think. Thank
     
  2. MartinAustin

    MartinAustin Active Member

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    Technically I ought not to be unhappy with the price increases, because the only real reason I can afford one of these cars is because I bought a ton of TSLA in early April. Prior to that my plan was to buy a BMW 328 for a heck of a lot less outlay. But right now it takes a day or three for my stockpile to increase by $12,000, so I can still afford the car, with the same number of stocks that I would have spent last week, even though the price has gone up.

    I've been putting off the purchase decision until after the Q2 earnings release - for whatever reason.

    Since I'm a stockholder, the new arrangement of P85 being slightly cheaper but with many, many features removed, makes it a more profitable car (even when the base P85 is purchased with no options) - so I am happy about that.

    I love the new options and will be springing for quite a few. Intrigued to know more about the new sound system option. I dearly wish there were grab handles, clothes hooks, and cup holders. The irony that such an expensive car is so bereft of these cheap conveniences (that a Hyundai Elantra has in droves) grows even more now with the price increase.

    Even with my positive outlook, though, the price increases still sting!!! I think I'm just cheap, LOL.
     
  3. AC1K

    AC1K Member

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    as it stands the model S is no longer worth it, this is a maxed out M5 vs the MS

    i am actually quite angry with the price hike, ive been freely advertising for tesla by offering rides and showing my P85, i got a ton of people ready to purchase the car, but with the price hike of over $20K in Canada, forget it, $20K can buy another car.
    not only that, they havent improved the design of the sunroof (it has the worse wind noise of any sunroof ive ever used) but now it costs another $1200 more, the audio system is crap and has always been crap for $1000, and now it costs $2800.

    i can no longer recommend this car because its not actually "better" when you factor in the price. (before it was the same price but you had less to maintain and no gas, but now the M5 is faster with more power and costs less for TCO)

    2013-08-03 22_41_12-BMW X5 M - Configure & Build Your Own _ BMW Canada.jpg
    2013-08-03 22_41_27-Model S Design Studio _ Tesla Motors.jpg
     
  4. Mr X

    Mr X Future Owner

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    who the heck would spend 120k for a M5? complete waste of money
     
  5. AC1K

    AC1K Member

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    the M5 outperforms the tesla in every way including 0-60, quarter mile, and all handling tests (2013 and 2014 models with the 575HP V8)

    with this price increase, its not worth it for the tesla anymore as $15K can buy you a ridiculous amount of gas and cover a ton of maintenance.
     
  6. HHHH

    HHHH Member

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    I think you've just been stung by Tesla. Give it time, this too shall pass.
     
  7. Twiddler

    Twiddler Member

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    Can't help but assume that this is going to mean a more expensive model X relative to my model S (i.e. same options on the X costing more than when I finalized my S)
     
  8. Quacker

    Quacker Member

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    How does a carbon fiber spoiler cost $1600 on that M5? I can buy a carbon fiber hood, trunk, and spoiler for less than that on my car, and still have money left over. Maybe there's solid gold under that carbon fiber.
     
  9. phat78boy

    phat78boy Member

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    Lol, that's the price for the CF spoiler on the Model S. Gotta love the new pricing.
     
  10. Quacker

    Quacker Member

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    No that would be insane, it's only $1500 on the Model S.
     
  11. SCW-Greg

    SCW-Greg Active Member

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    Who smokes who?
    [Video] Model S smokes BMW M5 in drag race - Blogs - Tesla Motors Club - Enthusiasts & Owners Forum

    Perhaps 2014 the tides have changed... but define the word "smokes."
     
  12. patp

    patp Member

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    #12 patp, Aug 4, 2013
    Last edited: Aug 4, 2013
    I did the same calculation. A fully equipped Model S is now priced in Porsche price bracket. Many people I know bought the car because it's awesome and a novelty, not because its green. So for those customers, an M5, RS7, CLS 63 AMG are the comparables.

    For sure Tesla will sell less cars but maybe they'll make more profit anyway (ie Porsche). But it's a dangerous game to play. Hope Elon is right.
     
  13. jerry33

    jerry33 S85 - VIN:P05130 - 3/2/13

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    Makes the car I have look like a real bargain. I would never have been able to afford the new prices. I believe it's a big mistake. The a la carte idea is good but when you add up all the pieces it adds $12K to the price. Perhaps the correct way would have been to keep the existing prices for the packages and then have the a la carte items at the new prices. For example if you wanted an S85 with carbon fibre, you would pay $800 for carbon fibre.

    The only reason I can think of for the price increase is to reduce the orders in the U.S. so they can ship half the production overseas without increasing the backlog.

    Shorts are going to have a field day with this pricing.
     
  14. Johan

    Johan Took a TSLA bear test. Came back negative.

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    As long as demand doesn't taper of (globally) to a level where instead of being production constrained, they become demand constrained, I don't see how there could be much downside to increasing price. There is no such thing as "a fair price" or "the right price". The right price is the highest price the market is willing to pay. They must be pretty confident that demand will hold up. I think this also tells us that they don't plan on any massive production increases as Model X is added to the mix, but that the volume increase will come with Gen III. They couldn't go back down on pricing again, that would really really be a sign of weakness.
     
  15. kcveins

    kcveins delivery 2/7

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    I don't know the price of gas in Canada, but the $15K difference in gas vs electricity for me would be recouped in <3 years (20,000 miles/yr @16 mpg (combined mpg for M5) = 1250 gallons premium @$4.40 = $5500/yr).
     
  16. fiksegts

    fiksegts Active Member

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    those in the market for an M5, E63 or P85 aren't going to choose one or another over the $ difference, when spending this kind of money you buy what you want...


     
  17. jkirkebo

    jkirkebo Model S P85+ VIN 14420 EU

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    I would save a ton of money if I could order my EU model with the new pricing (no go as it's in production now).

    I got the P85 because the carbon fibre interior was the only one I liked. Now it's available on the S85 for $800.
    I got the tech package because of the xenon lights. Now xenons are standard equipment on all versions.
    I got the 21" wheels because I loved the turbine design. Now there are similar wheels available in 19" for a lot less.

    The only real downside is if they put DAB+ radio into the new sound package. $2500 is too much to pay for radio reception IMHO (FM is being phased out over here). DAB+ sould really be standard on EU models.
     
  18. Alexander

    Alexander P# 8,878

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    I agree and I disagree... I don't think that's true for the majority of people that were buying Model S's. There's always going to be the 1% that can afford anything they want. But what's made the Model S special is that it's the first practical, luxury EV that was attainable for the middle class.

    A lot of the MS owners and reservationists that I've met can/could barely afford the car as is (including myself). Just look at how long it took/takes for Signature reservations to fill up compared to the Production reservations. Most of the people buying these cars (MS and MX) can't afford to drop $40k. I think it would be safe to say that the upper middle class is driving the demand for Model S's and makes up the majority of the owner/reservationists. But I don't think that will be true going forward.

    Over the last 22 months I've put enough money away that I can spring for the options. But if 22 months ago I was presented with these options at the price points they're at now, I would of been EXTREMELY turned off to the car. I would of looked at it and said to myself "if I'm going to spend $70k on a car, I want $70k worth of features!"

    Its absurd (for us that have less money and sense) to think about spending $70k on a car when it's going to come with a horrible stereo system, no fog lights, no parking sensors, no heated seats, no onboard GPS, no electronic side mirrors, no daytime running lights, and no leather when a $53,800 BMW 528i comes with all of this standard!

    What's happened here is that Tesla is no longer trying to compete with BMW and Mercedes... With BMW and Mercedes, their cars are affordable and practical for those of us in the middle class. The Model S was already more expensive than BMW and Mercedes, but the Model S was still attainable when you factored in the tax incentives and fuel savings. But that's no longer the case.

    I now have to spend $97k to get the same options I would get standard in a $53k BMW.

    From my point of view, Tesla's no longer interested in selling to the masses. Tesla's new price point has moved them into competing with Porsche and Maserati. Unfortunately the masses are driving BMW's and Mercedes, not Porsche's or Maserati's.

    This is what Tesla's price hike says to me: "Goodbye middle class, hello 1%"
     
  19. Colasec

    Colasec Member

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    FWIW my car's configuration is now only $1750 more, and $1K of that I wouldn't choose to spend.

    60kWh / Leather / Tech (inc "premium lighting") / Pano
    $77820 before tax credits

    60kWh / Leather / Tech / Pano / Premium Lighting
    $79570 before tax credits

    If configuring now, I wouldn't get the premium lighting. So my config went up only $750 (Pano + $1K, Tech - $250, Base 60 and Leather same).

    Though if I were configuring now, I'd pay $500 for the parking sensors.
     
  20. Jonathan Hewitt

    Jonathan Hewitt Active Member

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    I didn't realize "premium lighting" was part of the old tech package...My car's supposed to come in a week and I got the tech package so that's cool for me. I agree, it wouldn't be worth it to me for an extra $1000.
     

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