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

Official: Upcoming Model S Price Increase & Timeline

Discussion in 'Model S' started by Jeeps17, Nov 20, 2012.

  1. Jeeps17

    Jeeps17 Cath Jockey in a P85

    Joined:
    Mar 17, 2012
    Messages:
    856
    Location:
    Montreal, Canada
    #1 Jeeps17, Nov 20, 2012
    Last edited: Nov 20, 2012
  2. contaygious

    contaygious Member

    Joined:
    Jul 25, 2012
    Messages:
    988
    Location:
    Marina, San Francisco
    whoa glad I got my price locked
     
  3. mitch672

    mitch672 Active Member

    Joined:
    Jul 1, 2012
    Messages:
    1,868
    Location:
    Stoughton, MA
    And for those of us that have very high reservation numbers, who won't even be asked to "configure" until 1st or 2nd quarter of 2013, what does it mean? I'm not paying a penny over $92,000 for my Model S :)
     
  4. action7981

    action7981 Member

    Joined:
    Feb 19, 2009
    Messages:
    79
    Location:
    So-Cal
    Nothing, anyone with a current reservation or anyone that reserves before the new pricing is announced will not be affected. Unless of cource you decide you just have to have one of the new options :wink:

    Given the current reservations count the price increase will most likely take place 3rd Qtr 2013. My guess is it's going to relate to Model S 1.5.

    So the question is, is there going to be a big jump in reservations over the next couple of weeks as people lock in the price or is it going to maintain it's current daily rate with some people figuring they will add a month or two to their wait time and get Model S 1.5?
     
  5. mitch672

    mitch672 Active Member

    Joined:
    Jul 1, 2012
    Messages:
    1,868
    Location:
    Stoughton, MA
    The only option that would interest me is all wheel drive, there's nothing else I would change, other than if that becomes a possible future option.. But of course it depends on the cost as well.
     
  6. RDoc

    RDoc S85D

    Joined:
    Aug 24, 2012
    Messages:
    1,471
    Location:
    Boston North Shore
    Hmm ... for those of us with Model X reservations, this seems a bit ominous.
     
  7. ckessel

    ckessel Active Member

    Joined:
    Jan 15, 2011
    Messages:
    4,264
    Why? The X pricing has never even been released. How would you know if it goes up or not?
     
  8. Rodolfo Paiz

    Rodolfo Paiz P85 "Plug and Play"

    Joined:
    Nov 19, 2012
    Messages:
    665
    Location:
    Miami, FL

    It means they will send you an email with the new pricing and choices, and they will ask you to configure and finalize "within a fair, predetermined timeframe". Meaning, they will tell you how long you have to make your choices. As long as you abide by the time frame they give you, you will not be subject to the price increase.
     
  9. Grendal

    Grendal Active Member

    Joined:
    Jan 31, 2012
    Messages:
    2,416
    Location:
    Santa Fe, New Mexico
    This makes perfect sense. Original pricing was based on the plans from over 2 years ago. Tesla has clearly said they want to have 25% margins. A lot of people on blogs and commenting on articles have said they didn't think that Tesla could keep those margins. The simple solution that every business makes is to raise prices until you are meeting your profit margins. Tesla has a good idea of costs now that they have hired people and bought equipment to make their cars. I don't expect the increase to be a significant one and the lower end will porbably be hit the hardest.

    This might be a result of the aluminum price increase.

    Remember that this happened with the Roadster too.

    It will only effect those purchasing a car that they will receive nine months from now.
     
  10. beck.christopher

    Joined:
    Nov 4, 2012
    Messages:
    97
    Location:
    Plymouth, MA
    I wonder what these new options will be, hopefully they announce a center console instead of the empty space.
     
  11. kevincwelch

    kevincwelch Active Member

    Joined:
    May 13, 2012
    Messages:
    2,005
    Location:
    Chicagoland
    I'm glad that Tesla is not increasing the price for existing reservation holders, and I suspect that this "fair, predetermined timeframe" is 30 days from receiving your "It's Time to Build..." email.

    The obvious question pertains to what is driving the price increase.

    Also, as you stated, I'm curious if we lock-in if we will be able to get any of these options. Maybe I want to nix the sunroof for the center console...who knows?
     
  12. Norbert

    Norbert TSLA will win

    Joined:
    Oct 12, 2009
    Messages:
    4,424
    Location:
    San Francisco, CA
    It doesn't say anything about "new" options, only that the line between standard/optional will change, and the pricing. Unless I'm missing something.
     
  13. tdiggity

    tdiggity Member

    Joined:
    Oct 3, 2012
    Messages:
    721
    Location:
    Bay Area, CA
    There might be some good from this. You might be able to get heated seats without the nappa leather, for example.
     
  14. Grendal

    Grendal Active Member

    Joined:
    Jan 31, 2012
    Messages:
    2,416
    Location:
    Santa Fe, New Mexico
    Alcoa jacked up their prices on aluminum?
     
  15. tdiggity

    tdiggity Member

    Joined:
    Oct 3, 2012
    Messages:
    721
    Location:
    Bay Area, CA
    The price of the Model S has been the same price since they announced it (1+ years?), I believe? Inflation, cost of business, etc.
     
  16. kevincwelch

    kevincwelch Active Member

    Joined:
    May 13, 2012
    Messages:
    2,005
    Location:
    Chicagoland
    True. I misinterpreted the bulletin wording.
     
  17. Lyon

    Lyon 2012 S P85, 2016 X P90D

    Joined:
    Dec 26, 2011
    Messages:
    1,929
    Location:
    Eugene, Oregon
    Even though I'm logged into My Tesla it won't let me see that, says permission denied.
     
  18. derekt75

    derekt75 Member

    Joined:
    Jul 16, 2012
    Messages:
    592
    Location:
    San Jose, CA
    Here are some guesses:
    1) After building a bunch of Model Ss, they're finding it hard to achieve the gross margins they were expecting.
    2) With the reservation rate currently exceeding their build capacity, they realized they could make more money by charging more. The reservation rate might drop, but when you're limited by capacity, not reservations, that doesn't matter as much.
    3) They'd prefer some more short term cash at the expense of long term cash. If you hear prices are going up, you might be more tempted to send them $5k today rather than waiting.
    4) Inflation.
    5) After seeing what options people are buying, and what options people are asking for, they've decided to restructure things anyway. While restructuring, they figure they can get some more revenue.
    6) Now that the $7500 tax credit seems safe for a couple years (thanks to Obama), they don't have to worry as much that the US gov't will cause an effective price hike that makes them noncompetitive.

    I suspect it's some combination of the above. Given all the reasons to do it, and the scarcity of reasons not to (lower long term demand that they couldn't satisfy anyway), I think it seems quite sensible. If the reservation rate plummets in the next few months, they can always roll back their decision with little lasting harm.
     
  19. Lloyd

    Lloyd Active Member

    Joined:
    Jan 12, 2011
    Messages:
    4,753
    Location:
    San Luis Obispo, CA
    Yep, Me too.
     
  20. derekt75

    derekt75 Member

    Joined:
    Jul 16, 2012
    Messages:
    592
    Location:
    San Jose, CA
    I get this problem all the time on TeslaMotors.com.
    Right after you log in, try clicking on the link again. Sometimes that works for me, sometimes it doesn't.

    - - - Updated - - -

    Oh, this is odd: the bulletin board now shows as empty.
    http://www.teslamotors.com/en_CA/forums/inside-tesla/tesla-bulletin-board
    Earlier today, it had a half dozen questions and answers on it, including the price increase one.
     

Share This Page