Tesla Increases Price of Model S 60 kWh and 85 kWh; P85 Version Gets Price Reduction

AUG 6 2013 BY STAFF 16

60-kWh Model S Pricing Gets Bumped Up

60-kWh Model S Pricing Gets Bumped Up by $2,170

While Tesla Motors continues to work out some kinks on its updated website, we’ve discovered this:

60-kWh Model S:

  • Old price after federal tax credit: $62,400

    85-kWh Gets Price Increase of

    85-kWh Gets Price Increase of $1,170

  • Current price after federal tax credit: $64,570
  • Price increase: $2,170

85-kWh Model S:

  • Old price after federal tax credit: $72,400
  • Current price after federal tax credit: $73,570
  • Price increase: $1,170

    P85 Pricing Goes Down by

    P85 Pricing Goes Down by $3,830

85-kWH Performance Model S:

  • Old price after federal tax credit:  $87,400
  • Current price after federal tax credit: $83,570
  • Price reduction: – $3,830

It’s worth pointing out that there are some “option issues” in play here.  These have caused quite a stir.  For more on that, we direct you to the Tesla Motors Forum, where Model S options are discussed in detail.

As a refresher, this isn’t the first time that Tesla “adjusted” Model S prices.  Check out this handy graphic from when Tesla altered Model S pricing effective January 1, 2013:

Tesla Model S Price Chart - Effective January 1, 2013

Tesla Model S Price Chart – Effective January 1, 2013

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16 Comments on "Tesla Increases Price of Model S 60 kWh and 85 kWh; P85 Version Gets Price Reduction"

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Tesla is now including the Destination and Regulatory Doc Fee in the price on the website, which before was not included. I am guessing those two total $1170, which would mean the 60 kWh got a $1000 price hike and the 85 price stayed the same.

The $1000 on the 60 kWh comes from the upgraded tires. You can get it back to the original price by removing them.

The website says the 60kWh 19″ upgrade is optional. It is included in the 85kWh.

1. Basic Supply and Demand still favor Tesla S – a car with essentially no competition in the EV market, and already beating its competitor ICE cars. So the gap between the S’s price and other EVs will increase to reflect the gap in abilities and relative positioning (all the rest being pretty much thrown into the same crowded field, and this is one reason why they keep slashing prices and offering lucrative deals).

I really hope that Nissan (or any of the others) see the light, and make a huge push to put an affordable and reliable 100+ mile EPA range car sooner rather than later. As long as the S was more a rumor than a mass-market reality, they could hide behind the common wisdom that it cannot be done. Well, it can. Now do it.

2. The move is also a classic trim-framing maneuver. Apparently the base model is selling “too much” (not a huge surprise here). So they are trying to make the other trims relatively more attractive by reducing the price differential, hoping to increase their average margin.

The cynical side of me notices that, as the Model S prices keeps going up, it will be much easier to boost margins on the GenIII sedan when a base retail of “half the Model S” used to mean $30k and now means about $36k.

At this rate, I fully expect that the GenIII sedan will start at $39,900 before gov’t. incentives.

The honest and open side is obviously what Assaf said: all other plug-ins are lowering prices, while Tesla has raised the price twice (effectively three times if you count dropping the 40kWh version). As such, demand is clearly healthy.

You saw that too, huh.

60kwh for me, thanks. The P85’s $19,000 premium may have included options, but I believe the performance (or Performance Plus) difference amounted to a change in struts and swaybars, not counting the power boost that few flaunt.

The gap has come down only marginally. On those forums, you can find a multitude of people looking to “downgrade” to the 19″ rims. 20’s must ride harsh, in the aspect ratio Tesla provides.

The 21″ improve handling significantly, from what I’ve read, but they kill range just as much. Between that and having to replace pricey performance tires every 10k to 15k miles, I’m surprised that Tesla raised the option price.

When the Model S first went on sale, the 21″ upgrade was $1500. When the Model S price went up, so did the 21″ option to $3000 or $3500 (I forget which). It’s now $4500.

I just checked their website, and WOW – there are substantial changes – they finally have fog lights, and they added parking sensors (requires tech package). The air suspension requires the tech package, as well (may have been true, but never stated before).

They added two new 19″ rim options – a partial turbine blade they call “cyclone” and they finally included the 19″ aero wheels that were shown originally but were removed before the Model S actually went into production.

The 60kWh does not include the 19″ tire upgrade, but the 85kWh does. So, that narrows the battery pack premium even more. The 85 includes the $2k supercharger capability and now the $1k upgraded 19″ tires.

I agree with other comments above – I think Tesla is deliberatey making the 60 less attractive relative to the 85. Plus, when you consider that the 85 has somewhat better performance, including a wider torque band, the differences in price between the base 60 and the base 85 is more justified than before, assuming you don’t need the additional range.

I also noticed that the dual chargers is now bundled with the high-power wall connector. Previously, you could add the second charger without buying the wall connector. Now, it’s all or none.

I guess, given the fact that public chargers and other opportunistic charging capabilities are limited to the 10kW variety (240V @ 40A), so there really is no need to buy the second charger unless you are going to use the 20kW wall connector.

The Tech package was reduced to $3,500 (was $3,750).

The 2.1ton super mistake is still weighing them down…

your again repeated weight comment has what relevance to this article?

If you don’t like it, don’t buy it.

The new performance base price is $83,570, but the previously priced $87,400 P85 included MANY options. Just add back the previously included leather, carbon fiber spoiler, and active air suspension with tech package and the new price is $94,820.

I haven’t even included the $4,500 21″ whees, the $800 carbon fiber dash or the $1,500 Alcantara headliner that most early performance buyers received or the $1,000 Performance seat trim.

The newly priced P85 is NOT the same car when stripped of the previously included options.

I’m trying to figure out why they are raising prices. Are their margins that poor? Is demand really that good? I’m not a business man, and I don’t have the inside track to Tesla operations, so I have no idea.