Thanks to Model ≡, Price increase is coming!

[Tam]

I don't know whether this was discuss, so here's the article's title:

Tesla: We've Let Customers Know Some Price Changes Will Take Effect In April

Apparently, this is not a surprise because even "Global Equities Research's Trip Chowdhry also commented on the price changes expected for the Tesla Model S in April,"

Tesla's rationale is "will need to create degrees of separation between Model S and Model 3."

 

[mikeash]

Note that Tesla only said there will be price changes, not increases. That does seem likely to be a euphemism for an increase, but it could also mean they're just shuffling some options around.

Your quoted rationale is from an analyst, not from Tesla.

 

[ChadS]

Ha - as usual, I don't put much stock (see what I did there?) in "analysts". The large size difference plus the 2x base price is plenty of separation. Not to mention that the 3 isn't available, so there's no need to separate yet.

I can think of a few reasons Tesla may want to raise prices on April 1, but separating the S and the 3 is surely not one of them.

I hope they have a "lease Model S until your Model 3 is available" offering (like they did for a short while with the Roadster when the Model S was on the way).

 

[Tam]

...Note...

My hat's off to you Mike!

Thanks for pointing out the differences.

 

[brianman]

The title of this thread is incorrect. The article doesn't say A is causing B. In fact it quite explicitly says something else entirely.

 

[ggr]

Actually I wouldn't be surprised if there was a slight decrease in the price of the Model S. The battery / cell costs must have come down by now.

 

[McRat]

Lots of car lines have overlap.

Example, Camaro pricing can exceed Corvette pricing. Porsche, BMW, MB, etc, have similar systems.

It always occurs if you have high option packages on entry level models.

So don't be too surprised if there are Model 3 variants over $75k. Maybe, maybe not, but it would not be unique.

 

[Max*]

The title of this thread is incorrect. The article doesn't say A is causing B. In fact it quite explicitly says something else entirely.

Must be a TMC first...

 

[Gizmotoy]

Ha - as usual, I don't put much stock (see what I did there?) in "analysts". The large size difference plus the 2x base price is plenty of separation. Not to mention that the 3 isn't available, so there's no need to separate yet.

I can think of a few reasons Tesla may want to raise prices on April 1, but separating the S and the 3 is surely not one of them.

I agree, but you do kind of have to wonder if they're scared of something like the Model X effect, where every news outlet stated Model X started at $130k or whatever it was.

Only in this case, I suspect the first thing that's going to happen as soon as the configuration tool comes online are headlines to the effect of "Well-equipped Model 3 more costly than Model S". That true for many cars, but Tesla is particularly sensitive to it because they're trying to grab low-cost mass-market appeal. For that reason alone it might make sense to put the base Model S out of range of a fully-optioned Model 3.

 

[TesAus]

I agree, but you do kind of have to wonder if they're scared of something like the Model X effect, where every news outlet stated Model X started at $130k or whatever it was.

Only in this case, I suspect the first thing that's going to happen as soon as the configuration tool comes online are headlines to the effect of "Well-equipped Model 3 more costly than Model S". That true for many cars, but Tesla is particularly sensitive to it because they're trying to grab low-cost mass-market appeal. For that reason alone it might make sense to put the base Model S out of range of a fully-optioned Model 3.

The concern would be lifting the price too much for the S and causing a slow down in sales for the next 18 months, on top of the slow down for people holding off for the new Model 3.

 

[Joules Verne]

I agree, but you do kind of have to wonder if they're scared of something like the Model X effect, where every news outlet stated Model X started at $130k or whatever it was.

Only in this case, I suspect the first thing that's going to happen as soon as the configuration tool comes online are headlines to the effect of "Well-equipped Model 3 more costly than Model S". That true for many cars, but Tesla is particularly sensitive to it because they're trying to grab low-cost mass-market appeal. For that reason alone it might make sense to put the base Model S out of range of a fully-optioned Model 3.

I don't see that happening. They are just going to reveal the car, open up reservations, and possibly reconfirm that the base price will be $35k. They are not going to show all option packages and pricing. So nobody will know what a fully optioned M3 will cost until we get closer to release.

 

[mikeash]

I agree, but you do kind of have to wonder if they're scared of something like the Model X effect, where every news outlet stated Model X started at $130k or whatever it was.

It didn't help that there was a long period where the only people configuring Xs were Founder or Signature buyers where the price was necessarily really high. The first concrete info about price most people got was when those people talked about configuring an X for a high price.

The 3 won't have a Signature series, and the base price will no doubt be front and center at the unveiling (unlike the X, where it was this vague "$5,000 more than a comparable Model S" for a long time) with options given much less emphasis. I don't think it'll be a problem.

 

[Trev Page]

There's no need to spread prices to prevent overlap, it happens all the time. Go price a BMW 3 series and you'll very quickly see it can exceed the base 5 series. If someone wants a Model S because of it's bigger size and particular technology they will pay the ask and not settle for a Model 3 that might come close or go over in price. Besides, I think if they were to consciously try and have a spread it's a bit too early for that given Model 3 is not due for production until very late next year. Don't expect any pricing details for Model 3 next week other than perhaps confirmation of a firm starting price.

Let's just hope if there is a price increase I hope Tesla keeps it in check, we've seen 3-4 prices increases in Canada in the last year alone and they're getting very expensive. I suspect sales have dropped off a lot up here because of the exchange rate.

 

[zambono]

Price changes outside of the US are a direct effect of the strong dollar. I'm eyeing an S but not too crazy about the elevated price for a new vehicle with immediate depreciation. I'm waiting to see what the 3 offers and if the price increase on the S is warranted. I suspect there are many in my same situation, those who have higher expectations of a 6 digit vehicle and it will cause a slow down in sales if they simply increase the price without a value increase real or perceived.

 

[FlatSix911]

Tesla officially confirms “price changes” for the Model S in “early April” right after Model 3 unveiling

Earlier this week, we reported on Tesla sales representatives warning potential customers of an approaching price increase for the Model S as soon as next month. Now Tesla officially commented on the situation confirming “price changes” for its flagship sedan in “early April”.

Tesla is now talking about “price changes” instead of an increase, but Tesla sales representatives were specifically referring to an increase earlier in the week, though without specifying an amount or percentage. Here’s the full statement a Tesla spokesperson sent to Electrek today:

“We don’t comment on rumor or speculation about future releases. Tesla is constantly innovating and adding new features to our vehicles to perpetually improve Tesla vehicles for our existing and future customers. We price our vehicles consistently throughout the world which requires us to adjust pricing to foreign currency exchange rates. We have let customers know that some price changes will take effect in early April. We always encourage those interested in purchasing Model S to place their order so they can start enjoying the many benefits of Model S today.”

Based on the comments of the Tesla sales representatives, the price changes are also anticipated in the US so the foreign currency exchange rates can’t be the only factor at play here. Tesla doesn’t comment on rumor or speculation, but we can certainly think of a few possibilities for “innovations” or “new features” to “improve Tesla vehicles”.

It could simply be related to new options in the Model S design configuration, like the recently added standard center console and the Slipstream wheels. It could also have something to do with Tesla working on a new higher-end Model S: the P100D. A new 100 kWh battery pack in the mix could change the Model S’ line-up and pricing structure.

In the US, the Model S currently starts at $70,000 (S70) and can go for as much as $138,000 fully equipped (P90D).

Another – though probably less likely – possibility is a slight design refresh, which is a rumor that has been a persisting since last year. It’s fairly standard in the automotive industry for a car model to get a “facelift” after being on the market for 4 or 5 years and the Model S will be 4 years old this summer.

We will likely have more concrete information to share with you about the situation in the coming weeks around the time or right after the Model 3 unveiling on March 31st.

 

[Saghost]

I don't know whether this was discuss, so here's the article's title:

Tesla: We've Let Customers Know Some Price Changes Will Take Effect In April

Apparently, this is not a surprise because even "Global Equities Research's Trip Chowdhry also commented on the price changes expected for the Tesla Model S in April,"

Tesla's rationale is "will need to create degrees of separation between Model S and Model 3."

The analyst seems to have made the separation part that is being attributed to Tesla in the article and thread titles up.

If you read the Tesla quote, it says they have kept pricing consistent and are constantly adding new features. Combined with the pricing adjustment warning, my tea leaves say significant new expensive options after next week, with little or no change to the base price.

We're pretty sure the P100D will be part of that, but I don't really think they'd have gone this far with the warnings if that was the only thing...
Walter

 

[Tabarnouche]

If they increase the price without adding features (meaning charging a higher price for an identical new car), I wonder whether the price increase would affect the value of a used Model S. If you have to pay $5k more for a new car, perhaps a used version may become even more attractive?

 

[Saghost]

I don't know whether this was discuss, so here's the article's title:

Tesla: We've Let Customers Know Some Price Changes Will Take Effect In April

Apparently, this is not a surprise because even "Global Equities Research's Trip Chowdhry also commented on the price changes expected for the Tesla Model S in April,"

Tesla's rationale is "will need to create degrees of separation between Model S and Model 3."

The analyst seems to have made the separation part that is being attributed to Tesla in the article and thread titles up.

If you read the Tesla quote, it says they have kept pricing consistent and are constantly adding new features. Combined with the pricing adjustment warning, my tea leaves say significant new expensive options after next week, with little or no change to the base price.

We're pretty sure the P100D will be part of that, but I don't really think they'd have gone this far with the warnings if that was the only thing...
Walter

 

[ecarfan]

I don't know whether this was discuss, so here's the article's title:

Tesla: We've Let Customers Know Some Price Changes Will Take Effect In April

Your thread title is inaccurate. The article you link to quotes Tesla as saying that due to currency fluctuations Tesla will be adjusting pricing. It does not mention the Model 3.

 

[Tam]

Your thread title is inaccurate. The article you link to quotes Tesla as saying that due to currency fluctuations Tesla will be adjusting pricing. It does not mention the Model 3.

Thanks for pointing that out. Is there any way to edit the title?

Like "Price Changes Soon"