Model S set to have a 3% price increase in November

[acarlos1000]

seems like the Model S is going to get a price increase:

Tesla Motors Inc (TSLA) To Increase Model S Base Price By 3% by November 22.
Tesla Motors Inc (TSLA) To Increase Model S Base Price By 3%: Report

 

[bob_p]

Tesla has been increasing prices over the last few months.

AP 1.0 was increased by $500, and then full AP 2.0 (EAP and FSD) adds $5,000 more.

With the introduction of the glass roof, pano roofs increased by $500.

And we don't know if Tesla will be increasing the price when they introduce the 100D, which could be an additional $10K.

Up until recently, Tesla had done a pretty good job of keeping the prices down. Before the recent increases, a fully loaded 90D was priced about the same as my late 2012 P85, and for that price, you would get about the same performance, 10% more range, power folding mirrors, parking sensors, TACC, AP 1.0, ...

Assuming the above price increases, a fully loaded 100D could cost an additional $16K, which is moving prices in the wrong direction, compared to the luxury ICEs Tesla is competing with for sales.

 

[ArtInCT]

All of the Model S cars will be outfitted with the new AP hardware.
I suspect that those prospective new Model S owners who will be ordering the base Model S may be on a more
restricted budget. If that is so, then Tesla may sense that new orders for base Model S 60's are coming in without Enhanced
Autopilot and without Full Self-Driving Capabilities. In other words, $8K less.

I think that the raise in base price reflects an effort to recoup, to some extent, the new cost of the AP hardware and other items.

 

[bob_p]

It's likely the base price increase is due to a combination of using software limited 75 battery packs and the software disabled AP 2.0 hardware.

Though, Tesla is installing the AP 2.0 hardware on every car because they want to get as many AP 2.0 cars out on the road as quickly as they can - and use those cars for collecting AP 2.0 data, even if the owners haven't purchased the AP 2.0 options.

While there may be justification with the price increases ($2K for the base models, and what could be $16K for a fully loaded, longest range, non-performance 100D), the Model S and X are still more expensive than the luxury ICEs they are competing with - and any price increases are moving the car prices in the wrong direction.

Plus, when the Model 3 is produced - and comes in at $35K - it may be more difficult to justify the growing price gap between the M3 and MS/MX product lines.