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...
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%"