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strider
Active Member
Yes, anyone who reserves before the actual increase goes into effect will get the current pricing.I wonder if I reserve on Monday if I will be stuck with the new price of if i can get current.. This kinda sucks I was planning on not buying until I could order it and have it within one month..
George said reservation holders would not be affected by the price increase as long as they finalized within a "fair, predetermined time frame" after they got the email requesting that they do so. My speculative and uninformed guess would be that "reservation holders" includes anyone who reserves his or her car before they formally announce the price increase. So, if you reserve soon you ought to be OK.
Remember, your reservation is refundable. If you can spare the $5K for now, I'd suggest reserving ASAP and then revisiting whether or not you want to keep that reservation after the price increase is announced. That way you can get the best of both worlds, and an earlier delivery. If you don't reserve, you could end up really regretting it. If you do reserve, you'll either be happy you did or you can cancel your reservation... and in that case, your only cost is the time value of that $5K for a month or so: call it 12% annually, so about $50 in a month.
Remember, your reservation is refundable. If you can spare the $5K for now, I'd suggest reserving ASAP and then revisiting whether or not you want to keep that reservation after the price increase is announced. That way you can get the best of both worlds, and an earlier delivery. If you don't reserve, you could end up really regretting it. If you do reserve, you'll either be happy you did or you can cancel your reservation... and in that case, your only cost is the time value of that $5K for a month or so: call it 12% annually, so about $50 in a month.
Yes, I'm speculating when it comes to GenIII pricing. But let's not ignore the fact that we have now seen the only two Tesla models brought to market -- Roadster and Model S -- announced at a price that was subsequently raised. So Tesla is batting 1.000 in pricing higher than we thought (some might even claim "higher than Tesla said" but I don't have solid facts to support that assertion). Whether or not they should raise prices is another matter. I'm just saying that their pricing history affects my (speculative) predictions about their Gen III pricing.
I thought I had the facts! We already know the price increase, don't we?
This is an excellent point that you made. But at what price do they have to sell EVs to be profitable? If that price proves to be high, then how will that convince other manufacturers that making and selling EVs is anything more than a niche business, suitable for the likes of Tesla?
While I understand the angst with any price increase, we need to take into account that Tesla is putting in place a price increase that will not take effect for 8-10 months (with the delivery of new reservations).. Counting early deliveries that is over one year after introduction. Ford, GM, BMW, Toyota, and nearly every manufacturer announce revised pricing and options with nearly every model year on every vehicle.
It seems "early" because Tesla has such a large backlog, but if they waited they could be tied to current pricing for 24+ months. I think they are trying to do the right thing in an awkward situation.
It seems "early" because Tesla has such a large backlog, but if they waited they could be tied to current pricing for 24+ months. I think they are trying to do the right thing in an awkward situation.
The only issue with this is the Roadster price adjustment was fairly dramatic.. Something in that ballpark could cause individuals on the cusp decline to purchase. I do understand inflation and other cost but i hope it is not more then 4k per model..
I wonder if I reserve on Monday if I will be stuck with the new price of if i can get current.. This kinda sucks I was planning on not buying until I could order it and have it within one month..
This will never happen, unless Tesla is in big trouble!
Tesla builds to order!
To stay healthy they should keep a healthy backlog of 3 months, and even that will be risky!
Getting your car 3 months after ordering it will probably not happen the next 2 to 3 years!
More so after the number of reservations they get now!
They get reserved a day in greater numbers then the speed they can build them a day!
Also, does anyone know a rough 'cost to build' estimate of the model S?
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Actually, it's more like going into a Chevy store and wanting to order a 2012 Corvette at current MSRP. This is a car already in production and already on the road. The 2015 Model S is a different story, however.
It's not exactly like either one, but is a little closer to the first analogy. You're ordering a product with at least a year-long waiting list at this point. What Tesla is saying is that there will soon be a price increase for new reservations but that people who have already reserved will get the current pricing. They are honoring their promises. Those who reserve a car after the price increase is announced are going to be actually buying and receiving a car at the end of 2013, or later, so Tesla is essentially maintaining the initial pricing for nearly 18 months after the first sales of the Model S. Anybody who disapproves of that is welcome to their opinion... I see it as fine, upstanding conduct by Tesla.
If they don't announce a price increase now, and they keep getting as many new reservations as they're getting right now, then they'd be stuck with current pricing until sometime in 2014. That'd be very harmful to Tesla: aluminum prices go up, other component prices go up, labor costs go up, and inflation makes the dollar weaker. Some things go down, like battery costs... but if there's a ton of demand for the car, then Tesla would be foolish not to strengthen themselves and protect themselves from potential cost variances. The price increase makes perfect sense to me.
Raffy.Roma
Rome (Italy)
I agree with you. Then it should also be considered that Model S is car of the year 2013. The recognized quality has to be valued. Model S won versus BMW, Porsche, Audi and so on. It's right that value of Model S increases when compared to other premium cars.
At the last SEC filing, they were estimating that they could build Model S with 25% gross margin once they got their volumes up in 2013.
AndyM
Member
Exactly. Prices go up, folks. Remember the early Roadster owners who were told the price went up AFTER they reserved... and count yourselves lucky.
I wonder if I reserve on Monday if I will be stuck with the new price of if i can get current.. This kinda sucks I was planning on not buying until I could order it and have it within one month..
Why wait until Monday? The website is always open... Like other said, if you can spare $5k right now, there is no harm in covering your bet until the new prices are announced.
And other manufacturers looking at Tesla making cars so in-demand they raise prices. Do they jump on board and make their own EV that people want just as much? Or do they throw up their hands and give up?
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Exactly. Prices go up, folks. Remember the early Roadster owners who were told the price went up AFTER they reserved... and count yourselves lucky.
Well they actually made things that were previously included with the car paid "accessories"
While it's not a bad thing that they're making profit, I don't see how they can justify raising the price because of increased demand when they should really be raising the supply to meet the demand. Raising prices will only turn people who are 'on the fence' off from purchasing.
The only way I can see this making any kind of sense is if the new reserve holders will actually be purchasing a new and updated 2014 version of the model S. Not the same exact thing. Is Tesla going the rout of a new 'version' per year?
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I'm not sure I agree with GeorgeB on this. I haven't seen much complaining about getting the news. People have mostly complained about the content. In fact most people have only complained about NOT getting the news when it was bad. The over-priced service required to keep your warranty that wasn't announced until after many of us had locked in is a good example. Many of us would not have complained as much if we had been given the bad news early on before we had any choice but pay it. On the other hand, the price increase is a good example of bad news that is resulting in praise for communication even if nobody likes to see a price increase.
Norbert
TSLA will win
In that case, it is at least a "niche" business. In the other case, it is not a business at all.
Woah. Hold on. We have no idea why the price is changing, nor how much.
And no Tesla is not doing a new version every year. They have said they will make improvements whenever they are ready and won't make them wait for a model year changeover. Some of those future changes will likely require pricing and package changes.
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