Official: Upcoming Model S Price Increase & Timeline

[hj-45]

Well, it seems some were correct about the MSP costing more because now with 19" wheels, the new cost of the MSP is the $2500 increase plus $3500 for the lost value of the 21" wheels. Reserving the Performance now saves you $6k.

 

[bosgig]

". . .the same price set over three and a half years ago. . .A straight 8.75 percent CPI increase would now yield a base price for Model S of $62,400, an increase of $5,000. Tesla is increasing prices only half that amount. . ."

I agree that Tesla is handling this well and that if demand supports it, they're perfectly entitled to a price increase. Really no complaints from me. I will say, though that their positioning is pure corporate spin. They set that price three and a half years ago knowing the car wouldn't be delivered until 2012, and therefore set the price for 2012 deliveries. You couldn't take delivery of a Model S 3 1/2 years ago, so the price never applied to a vehicle then--just vehicles now. Again, not complaining at all, just pointing out that the "logic" is really just public relations positioning.

 

[Todd Burch]

". . .the same price set over three and a half years ago. . .A straight 8.75 percent CPI increase would now yield a base price for Model S of $62,400, an increase of $5,000. Tesla is increasing prices only half that amount. . ."

I agree that Tesla is handling this well and that if demand supports it, they're perfectly entitled to a price increase. Really no complaints from me. I will say, though that their positioning is pure corporate spin. They set that price three and a half years ago knowing the car wouldn't be delivered until 2012, and therefore set the price for 2012 deliveries. You couldn't take delivery of a Model S 3 1/2 years ago, so the price never applied to a vehicle then--just vehicles now. Again, not complaining at all, just pointing out that the "logic" is really just public relations positioning.

I absolutely agree. I don't think the price increase is unreasonable, but the "first increase in 4 years" is pure propaganda.

 

[NigelM]

....not complaining at all, just pointing out that the "logic" is really just public relations positioning.

Agree. But remember how many people were complaining months ago that "free" service should have been included in a higher price and said they would have been happier if that had happened even though they knew it wasn't "free"? Sometimes consumers want spin.

 

[NielsChr]

I've recived the new prices by email, and find them resonable, prices does increase over time - so does a Tesla .well done Tesla.

The email does how-ever not mention how the priceincrease influence a performance model (not that it matter for me) but for some future reservation holders it might be importent to know.
Also no word about options - the design studio does not yet reflect the price - I guess it does not since they are not effected before 1/1 2013.

 

[JohnQ]

Must say, as a reservation holder who deferred (P1,491) I'm quite pleased at how Tesla handled this. My deferral was to get the production red paint (Sunset or whatever it's eventually called) and they put the option on the design studio at the same time they announced the increase. I have been given full information in a reasonable time frame and can now hit the finalize button.

Edit: Well, full information with the exception of what the production red will actually look like ... can't rely on the Sunset Red that was at the Get Amped events as the color mix will likely change.

 

[jomo25]

Based on what I've received from Tesla, I do feel this is reasonable. I was never opposed to the price increase. I think it's fair as prices do need to be updated over time. I was bothered by the potentially short timeline I'd have to finalize before being subjected to the price increase. Through no fault of my own, I have not been able to get a test drive in a reasonable manner, so I was concerned I'd be forced to make an uninformed decision on a very large (and risky) purchase or pay more later.

My reading says I will have until about the end of January to decide now. If that's the case, I think it's just within the bounds of fair. I still hope Tesla can do something more to help those in states where "selling" is not allowed to get test drives. A second set of Amped type drives might be in order if they can get the "special" licenses to do them en masse. I'm sure there are lots more reservation holders now who joined since the original Amped events. And many of them also would not be able to travel to CA.

 

[pilotSteve]

My thoughts are (a) its reasonable in all respects, (b) LOVE the "covers everything but tires for 100,000 miles/8 years for $3900, and (c) non-sig Performance buyers are the BIG winners here!

Pricing comparable cars (same options, 21" wheels, twin chargers, multi coat paint, tech pkg, pano, hpwc, etc. and including the $7500 credit): Sig $91,500, Perf Red $96,500, after 12/31 Perf Red $102,500

I'd be REAL happy to have my fully configured performance S locked in at $6,000 less than 2013 cars. Nice value for early adopters. Wish I'd sprung for perf myself, but oh well.

 

[brianman]

non-sig Performance buyers are the BIG winners here!

If you mean pre-increase buyers, definitely agreed.

 

[ahimberg]

The 'spin' on price increase over 4 years doesn't really work for what they did for Canadian pricing though, wasn't that just set a few months ago, and now its going up 2600$. Using their math with every 6mo CA pricing going up they get a 10% base increase every year . Plus Canadian's already got the heated 12-way seats in their pricing so there is nothing included in that 2600$ bump. (but what is that really to tesla, 50-100$ a car for the 12way+heated seat?)

 

[ken830]

The new Blog entry is up:

 

[NigelM]

The new Blog entry is up:

Thanks. Apart from this one, there are also discussions already up on the following threads:

Official-Replacement-Battery-Option
Official-Model-S-Extended-Service-amp-Warranty-Options
Canadian-Pricing-and-Delivery
Heated-seats-standard-with-price-increase

 

[strider]

My reading says I will have until about the end of January to decide now. If that's the case, I think it's just within the bounds of fair. I still hope Tesla can do something more to help those in states where "selling" is not allowed to get test drives. A second set of Amped type drives might be in order if they can get the "special" licenses to do them en masse. I'm sure there are lots more reservation holders now who joined since the original Amped events. And many of them also would not be able to travel to CA.

Jomo,

As more cars hit the streets, I'm sure someone near you would let you drive their Model S unless you're looking to drive a 40 or 60 pack. If you've spent time on TMC you know about as much as the folks in the stores so it's just a matter of getting behind the wheel.

 

[Grendal]

I sure hope they don't raise the price to where i can't afford it. I'm not in a position to finalize right now and it will be a few more months before I am. This is really disappointing.

You posted this when the increase was first announced. Now that the actual timeline and pricing are in, will it work for you?

 

[KenEE]

If I read it right you could get a $8000 discount by buying the 40kWh battery now (saving $20k) and purchasing an 85kWh battery later for $12k.

 

[Laumb]

No Ken, the 12k is up front, and my guess, only 85kwh customers gets to buy 85kwh battery replacement.


_____
Tapatalkin' from iTalatut.

 

[Rodolfo Paiz]

Also, note that they'll replace the battery for you "any time after the 8th year" if I recall the wording right, because the idea is that you're locking in your cost to replace the battery when its capacity degrades sufficiently.

Good idea to offer that option: many people will feel more comfortable knowing their future cost for certain. Personally, I'm willing to bet that a new 85 kWh battery will cost me less than $25,000 in eight years... which is about what my $12,000 (today) will be worth then, assuming an average 8% annual rate of return. So I personally wouldn't buy the battery replacement option even if were the kind of person to keep the car for 8-10 years.

In reality, I'm not expecting to keep the car that long anyway. I'm sure they'll offer a four-seat convertible in the Gen-3 series, or a dual-motor AWD Model S, or some other car variant that'll make me trade in my MSP long before 8 years have passed.

 

[spatterso911]

If I read it right you could get a $8000 discount by buying the 40kWh battery now (saving $20k) and purchasing an 85kWh battery later for $12k.

Not only that, but it's also been discussed that there are hardware and software difference between the models that eliminate the ability to simply drop a larger capacity battery in. It's how they explained why they want you to buy the battery that you really want instead of planning on adding it later.

 

[Todd Burch]

Not only that, but it's also been discussed that there are hardware and software difference between the models that eliminate the ability to simply drop a larger capacity battery in. It's how they explained why they want you to buy the battery that you really want instead of planning on adding it later.

Spatters, I suspect that has more to do with power output (perf vs. non-perf) than capacity. The software side is no problem to update. I can't imagine any barriers to a larger capacity pack such as 120kWh for a car that was originally 85kWh...as the 120 kWh pack's power output can be controlled to match 85 kWh levels.

Disclaimer: I've taken some EE courses....but I am not an EE.

 

[yobigd20]

Also, note that they'll replace the battery for you "any time after the 8th year" if I recall the wording right, because the idea is that you're locking in your cost to replace the battery when its capacity degrades sufficiently.

Good idea to offer that option: many people will feel more comfortable knowing their future cost for certain. Personally, I'm willing to bet that a new 85 kWh battery will cost me less than $25,000 in eight years... which is about what my $12,000 (today) will be worth then, assuming an average 8% annual rate of return. So I personally wouldn't buy the battery replacement option even if were the kind of person to keep the car for 8-10 years.

In reality, I'm not expecting to keep the car that long anyway. I'm sure they'll offer a four-seat convertible in the Gen-3 series, or a dual-motor AWD Model S, or some other car variant that'll make me trade in my MSP long before 8 years have passed.

I have a completely different view on this. I'm no expert on lithium ion battery costs, but according to the resources I see all over the net, including a statement from Elon Musk himself, the prices of lithium ion batteries should continue to drop significantly year over year, even after accounting for inflation. Why pay $12000 now when it may costs significantly less (especially after adjusting for inflation if you were to put your money elsewhere and let it grow) than that 8 years from now? It doesn't make any sense to me at all why ANYONE would elect for this option now and prepay it. I expect the impact that Tesla is going to have on this industry is going to force many manufacturers to copy their design and result in major competition between lithium ion battery vendors, thus promoting healthy competition and significantly drive the prices for batteries down even further than the current estimations for prices to drop in 8 years. I mean the only thing really would be if batteries prices drop so much but Tesla never passing this savings on to the consumer and instead use that growing spread to increase their profit margins...but I can't see that happening when 8 years from now there will be other major players in the EV industry they'll have to go head to head against to keep their prices competitive.

Declining Lithium-Ion Battery Costs Could Knock Thousands Off the Price of Electric Cars | Inhabitat - Sustainable Design Innovation, Eco Architecture, Green Building
Cost of Advanced Lithium-Ion Batteries for EVs Dropped 14% Last Year, 30% Since 2009 : TreeHugger
Lithium-ion battery costs will still be about $400/kWh by 2020