Tesla Increases Base Price Of Model S, X: Adds More Features

JUL 23 2018 BY VANJA KLJAIC 24

Customers are getting more for less, essentially

Silently, behind the scenes and the Model 3 spotlight, Tesla Motors have updated the Model S and Model X design studio. The most significant update is the ‘Tesla Premium Upgrades Package’, coming in as standard on every non-performance version of the Model S and Model X. However, even though this is pretty excellent news for future customers, this also means that the prices for both models are increased – but not by much and, customers are now getting more for their money.

Before this update, the ‘Premium Upgrades Package’ was priced at $5,000 for the Model S and $6,000 for Model X. It includes several premium features such as the HEPA air filter with the ‘Bioweapon Defense Mode’ and a more premium audio sound system. The latter, designed & engineered specifically for Tesla’s ultra-quiet interior, features 11 speakers with neodymium magnets and 8″ subwoofer, allowing for a much deeper and of higher quality sound. Furthermore, the package contains heated seats for all passengers, a heated steering wheel and more, pushing the value for money factor even further.

Previously, the package came as standard just for the performance versions of the Model S and Model X. Now, Tesla deemed fit to include it in the Model S and Model X 75D and 100D as well, making it standard for all their vehicles.

Fortunately, the price hike isn’t that substantial. While it brings a more premium feel to owners, the toll on your wallet won’t be that high at all. The price for the Model S is increased by only $2,500 – pushing the start price point to  $77,000 (Model S 75D). For the Model X, the price is brought up by $3,500, which makes the vehicle’s base price at $83,000 (Model X 75D). In turn, if you ordered the ‘Premium Upgrades Package’ as an option, you’d be paying much more than with the current upgrade made by the automaker.

While we feel this upgrade is made mostly to make the Model S and Model X feel more premium when pitted against the entry-level EV from the car maker – the Model 3 – we also believe this allows Tesla Motors to attain a more streamlined production process, with less possible variations and changes, thus making vehicles less expensive to produce.

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24 Comments on "Tesla Increases Base Price Of Model S, X: Adds More Features"

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Do you think that eventually TM3 $5K PUP might become standard and Tesla will only charge $3K more for the car?
It might even be completely free once the tax credits expire next year to make TM3 more attractive.

What I am convinced of more every passing day is that a true $35k Model 3 will not be delivered outside of perhaps a few token deliveries so Elon can say he fulfilled his $35k pricepoint promise. A $40k+ base Model 3 is certainly in the future.

I’m pretty sure that Tesla would find itself in some form of litigation if they don’t release a 35K+/- 5% car. They will have miss led a lot of people that was a condition of prepayment.

They will release a $35k Model 3, and deliver a few. Then they will kill off the $35k 3 due to “lack of demand” and inflate the base price to 40k+. Follows exactly what they did with the Model S and X. Remember when there used to be cheaper, 60 kWh versions of those vehicles offered? And especially the 40 kWh Model S. That thing was killed off real quick.

Even if the $35k version does get killed off, Tesla will still be making a product that folks want. And the battery size in the S and X has been changing since the cars were released. And it’s working. At the end of the day, Tesla does what it needs to do for Tesla, not bro1999. That’s what folks like you miss- you think the company should directly cater to your wants, regardless of the legions of folks who willingly pay more. (Pssst- it’s a business, not charity) Even at $40k, the Model 3 destroys the Bolt, which is the only true Model 3 comptetitor. Folks who are priced out of the ‘brand new’ market can still buy gently used, just like I did. 2-3 years from now the used market will be FLOODED with Model 3’s, pick one up then for less than $35k. You’ve lived multiple decades on this earth without a Model 3, what’s a couple more years?? Chevrolet claimed they could beat the Model 3 in terms of the $35k price when it was released a couple years ago. I walked out of the Rocklin dealership when they started out negotiating at $49k. You know what… Read more »

$49k Bolt? wtf? Lol
Sounds like you had no clue how to negotiate a good deal, or negotiate at all. I’m glad you’re happy with your used Tesla. Good luck with the repair costs once the warranty expires. I hear the door handles are a real b!tch.

Yeah, I’m the idiot for not playing the dealer game. What was I thinking? I missed my chance to spend a couple more hours getting jerked around by smiley glad hands in cheap suits. When someone starts out so aggressively attempting to fleece me, I simply move on, I don’t stick around to hopefully get a good deal. Luckily those GM folks helped me into a MUCH better driving experience. And even if I do have an issue with a door handle down the road, I’ll enjoy the same operating costs as the lesser Bolt in the interim, but with WAY better performance and features. And in about 3-4 years, I’ll pick up a used Model 3 for little more than you paid for your Bolt.

Have a great Monday.

I have a S85D with nearly 100k miles (had it since early 2015), and $0 repair cost outside warranty which ended at 50k miles. Don’t believe the $hit spewed by jealous losers like Bro the Bolt lover.

Actually, if you view Tesla as a charity their incompetence and money-losing ways make a lot more sense. Thank you for this insight!

Luckily the loser company that’s Tesla has folks like you to continue giving them your cash. Once you remove ignorance, all that’s left is stupidity. Without ignorance, what’s your excuse for backing a loser?

It’s incredibly easy to obtain a base Bolt under a $35K sales price, you are truly better off leasing one if there’s a “cheap lease”…Most including many GM fans agree that the midsize 3 is a better and more desirable vehicle than the subcompact Bolt…Tesla would lose a great deal of creditability and investors if the $35K isn’t offered…Currently, you cannot buy a base long range 3, you’re still forced to purchase the $5K PUP…

You’re right however Tesla did honor the price for every reservation holder…

They misled people that Tesla 3 will be able to to tow, which was one huge feature that I was waiting for. Lack of (or token numbers) $35K Tesla 3 won’t be any different.

I think that the current reservation holders will be able to purchase the base $35K version if they are willing to wait. Whether the $35K base is offered as a configuration to newly placed orders remains to be seen.

Mr. Admins: Why I can not vote up this post?

Glitch

Maybe not 40k but 37,38 for sure.
Except for some token 35’s just to say they did it.

Never going to see the 150k semi either.

I don’t think they will make the upgrade package mandatory, at least unless and until they release an even cheaper model at some point…

So in short, there are absolutely NO new features. Just extra price.

“Extra price” is only $2.5k for TMS, $3.5k for TMX. You get tons of Premium Extras, that cost More $$$ for the same Extras, in previous versions.

So, in short, you Win Big with Extra Features, with either the New TMS & TMX!

The difference is the extra price is spread across more vehicles ,so they can charge less. They might not have been seeing a large take at it’s higher price on more expensive models.

This move also opens the door for Tesla to build inventory if S and X sales slow down.

It could be that every car sold was picking those options, so Tesla bundled them in. Lots of people like to hate on Tesla, but this seems to be their operating model, so makes sense to me.
One thing you start to realise over time, volume generally beats price. Sure, you can sell 50,000 $100,000 vehicles ($5bil turn over), but 500,000 $35,000 vehicles kills that ($17.5bil turn over). With 25% margin that’s $1.75bil vs $4.38bil. I think I’ll go with the $4.8bil, wouldn’t you?
If you could sell 1mil $20,000 vehicles, then the marginal value is $5bil, so obviously volume has to increase dramatically, but that’s how all automotive works anyway, low volume high priced vs high volume low priced. Simple maths, Tesla just has to get to that volume. At 5,000 per week they’ll be half way there (although even that volume is still twice the margin rate at >$2bil).
Other manufacturers have $5bil annual profits. Do you think Tesla doesn’t have that in their sights? You’d be pretty stupid in that case.

Inflation rate is currently 3%. The price increase mostly just reflects inflation (all cars go up in price with inflation. because the value of the dollar in your pocket is 3% less than 1 year ago). Prices going up with inflation is not really news.

This is really a news story about Tesla giving away $5K to $6K in free premium option upgrades. That is news.

So of course the usual suspects get it exactly backwards and ignore the free premium options, and blindly focus on the impact of inflation on the dollars in their wallets as if inflation were some Elon Musk Tesla grand conspiracy!!