A few weeks after the Tesla Model S won Motor Trend’s 2013 Car of the Year award, Tesla Motors (NASDAQ:TSLA) announced it will be increasing the base price of its flagship vehicle.
George Blankenship, VP of Worldwide Sales and Ownership Experience, explains, “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 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. We are increasing prices only half that amount, giving Model S a new base price of $59,900 before federal tax credits.”
Or, more simply, $2,500 to the base price of each Model S variant.
But that alright Gasoline is being traded up 4 cents a gallon after a 3.9 Million Barrel build last week
TSLA's top model also goes zero to sixty in 4.4 seconds and goes 265 miles on a charge. Of course you pay for it.
Model X (100 eMPG SUV) comes next year. Then Bluestar (3-series BMW competitor). Then Model C (looks like a Honda CR-Z) etc. etc. The only problem is the cheese goes away at 200,000 cumulative electric units per manufacturer. Go to the Tesla website and punch up pricing. They quote prices net of Fed. credit, which is a little bit disingenuous. That price rises by $7,500 once the credit goes away. The bet is by then (2017?) batteries will be much cheaper so the EV cost is lowered by a commensurate amount.