Tesla Bumps Pricing On Model S For 2013

NOV 29 2012 BY STAFF 9

Tesla today announced that effective January 1st, 2013, pricing on its award winning Model S will be increasing.

The move had been foreshadowed by the company last week, and we speculated at the time that it most likely had come about in order to preserve automotive margins on the vehicle which are forecasted to be under pressure in the first and second quarter of the new year.

The base 40 kWh Model S, which has not actually started production moves from $57,400 to $59,900.  To soften the blow, Tesla has said that all trim levels of the Model S will now feature adjustable 12-way, heated front seats for no extra cost. 

Interestingly, that amount would exactly use up the current administration’s pledge to increase the $7,500 federal EV incentive program up to $10,000, thus making the car the same net price to the consumer.  All trim levels (40kWh, 60 kWh, 85 kWh and 95 kWh Performance) have increased in price by $2,500.  However, the Performance package now has 19″ wheels as standard, and the 21″ will be a $3,500 option.

Tesla explains the increase another way:

Tesla  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.

The price of the Model S in Canada also gets a bump by $2,600 to $67,100 ($67,500 USD).

Tesla notes that current reservation holders, and those who still order before January 1st, 2013 will not be affected by this pricing increase.

New Model S Pricing Structure (via Tesla Motors)

Seperately, Tesla finally updated owners on how much an out of warranty pack replacement will cost should they be looking to pre-purchase that option.

  • 40 kWh – $8,000
  • 60 kWh – $10,000
  • 85 kWh – $12,000

While the pricing reflects a much lower than cost amount to Tesla today, one should note that Tesla does have a significant rider on the purchase of these packs and when you can receive them:

We have received many requests for a Battery Replacement Option. We are happy to now offer this option for all three battery variants. This option will provide you a new battery anytime after the end of the eighth year at a fixed price. (listed above) You will be able to purchase this additional option through your MyTesla page in the near future.”

Tesla Media

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9 Comments on "Tesla Bumps Pricing On Model S For 2013"

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The battery replacement option is interesting. Am curious what the ‘fixed price’ will be.

Those are the fixed prices, 8K, 10K and 12K.
(will add info to make more clear)

The battery replacement option better be transferable.

Do you have to buy the battery replacement now (or with the car at purchase) or can you wait until you actually need it?

$200/kWh in 2020 (or later) is a reasonable price. I think it would be a bad deal to buy now – not because of price but because of capacity. In 2020, I’d image battery capacity would have increased enough to get at least a 120kWh battery that would provide for 400+ miles of range, if not much much more.

Wouldn’t it be nice if they were guaranteeing the price 8 years from now? Sadly, you buy now, receive later. Good way for Tesla to bank cash with no short term expense. That being said, you also have to trust Tesla will be around in 8 years.

Hopefully that, if at the end of 8 years you realize you can hold off on the pack replacement (say your range only went down 10% and you’re OK with that), they can postpone the upgrade until you actually need it (get to 20% range degradation).

This price increase is definitely less than I expected and will probably have almost no affect on demand.

As far as the replacement battery cost, I would guess this would be the price you pay on top of also giving your old battery back to Tesla. That is why there is only a $2k price difference between each size.

The old packs will probably be worth $100 / kWh in stationary storage applications. So 85 kWh * 0.7 (pack degradation) = 60 kWh capacity or $6000 value. So they just need to get the pack cost down to $18k to break even on this. I suspect they aren’t too far off that right now.

Less than expected.

BTW, I very much welcome seat heaters for non-leather seats.

For anyone who hasn’t looked at S options, the “tech package” that costs $5K is almost a necessity. It has many things that we take for granted even in the base Leaf model. S without that option is really not a “modern” car. So, we are looking at a minimum of about $60k (after delivery etc) even for the 40 kWh model.

Weird, I priced out a base with tech in Canada, and the tech was $4k as I recall…but I will say the ‘bottom’ line price in Canada was ludacris at around $79,500 for the 40 kWh, now add another 3K on top now and we are talking $82,500 ($83,077 USD).

I’ve seriously considered putting down a deposit on one, but I just can’t justify the cost in light of what is coming up in 2013. Short of a Nissan eNV-200 (for my business), I’m torn for my next EV purchase…other than I know it will come in the fall of 2013 for sure.

I have a nice relationship with Nissan, so the Infiniti LE seems like a good choice (it has lots of twirlly goodness/luxury and I think there is going to be some surprises there), but the BMW i3 with extended range option is really appealling too (huge electric range and range extender). Outside shot on the Cadillac ELR if GM doesn’t disappoint by making it a lightly tweaked Volt 1.5.

Nice to have choices though, (=