Tesla Model S Price To Go Up $2,500 on January 1st
Half the CPI... Could be WorseAs recently foreshadowed, Tesla has officially said that the price of its Model S electric sedan is going up by $2,500 on January 1st, 2013. The company justifies the increase by saying that it's half of the official inflation numbers during the period:
"Tesla Motors originally unveiled the Model S in March 2009 with a base price of $57,400 ($49,900 after federal tax credits). Today, Model S is the most award-winning car of the year and the base price remains at $57,400, the same price set over three and a half years ago. During this same period of time most automotive companies have had at least three price increases and general inflation (CPI) has gone up 8.75 percent. 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, giving Model S a new base price of $59,900 before federal tax credits."
Tesla further adds:
The price increase announced today will be for new reservations starting January 1, 2013. These new reservations will begin deliveries several months later, which means the new prices will actually go into effect over four years after Tesla originally set base pricing for Model S.
This price increase will not apply to anyone who has or makes a reservation by end of day on December 31, 2012…as long as they finalize their order within a reasonable, predefined timeframe after being invited to configure their Model S.
In Canada, the base price of Model S will increase $2,600 CAD and implementation will be the same as in the U.S.
Still, for most of us, the most exciting thing about the Model S is that it brings us closer to Tesla's 3rd platform (the Model X doesn't count, as it's on the Model S platform and should be priced similarly), which should be sold for a much cheaper price thanks to economies of scale and further improvements in technology. If I could get a nice electric car for about 25K (after tax credits) that gets around 150-200 miles of range and can handle fast-charging, I'd be all set.