Tesla Model S Expected To Get $2,000 Price Increase Later This Month

NOV 10 2016 BY ERIC LOVEDAY 30

Tesla Model S To Start From $68,000 Later This Month?

Tesla Model S To Start From $68,000 Later This Month?

A person who goes by the handle of “ElonsVelvetJacket” on Reddit is claiming that the two lowest versions of the Tesla Model S, the S 60 and S 60D, will both get a $2,000 price bump later this month (November 22, to be exact).

Tesla re-debuted the 60 kWh Model S In June

Tesla re-debuted the 60 kWh Model S In June

Now, we’d normally write this off as just speculation, but since ElonsVelvetJacket has been right more times than wrong in the past, we believe his/her statement to hold a lot of credibility at this point.

Here’s the Reddit post in its entirety:

“Model S 60 and 60D increasing by $2,000 on November 22nd.”

So if you are in the market for a entry level Model S, we would suggest acting quickly if you’d like to avoid the potential price increase on either of the two listed versions of the 60 kWh Model S.

Currently, the cheapest S is the 60 starting from $66,000, but that will likely jump to $68,000 in a little over a week.

Another incentive to also buy soon is the end of  Tesla’s “free Supercharging” for the life program if you plan on being an active user of the network, which converts to pay-as-you-go (after the first 400 kWh of annual use) beginning on January 1st.

The graph makes it easy! Tesla Model S and X comparison for U.S. (October 8, 2016)

Today’s full Tesla lineup plotted in one easy chart (Specs and pricing as of November 1st, 2016)

Tesla Model S 60

Tesla Model S 60 (Model S 60 – 210 miles range, Model S 60D – 218 miles)

ElonsVelvetJacket on Reddit

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30 Comments on "Tesla Model S Expected To Get $2,000 Price Increase Later This Month"

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Is the price increase based on strong demand, positioning for the upcoming Model 3 or sharp pencils trying to match sales price to actual costs to achieve desired margins?

I belive that they have counted that a certain part would take 75 kWh and therefore would take up some of the losses they make when they deliver a car with 75 kWh but sell it as 60 kWh. Now they have found out that a lot of people buy a 60 kWh Model S without any plane to update it so they need to higher the price.

Perhaps if they didn’t want a ridiculous sum for the extra 15kW more people would pay for the 75 🙂

“Perhaps if they didn’t want a ridiculous sum for the extra 15kW more people would pay for the 75”

^^^^THIS.
Tesla, are you paying attention?

In My view The Entire Car is “OVERPRICED”…If they keep it up they’ll price themselves out of the market..

More sales to the GM BOLT then.

Or Tesla M3 next year.

Next year? LOL!!

Tesla can’t produce enough card while almost all luxury competition takes noise five each quarter.

Everybody else would like to price themselves out of market like Tesla….

@Pinewold

Do you think paint colors other than black cost $1,000 more than black?

Lots of great insights here. The theory Tesla is gaining understanding the impact of 60kWh vs. 75kWh sales sound reasonable. The impact of Powerwall making current upgrade price too high really makes sense to me. Hoping that would bode well for Model 3.

I actually have more questions rather than insights:

– are they using the same cells/chemistry in their car battery packs and stationary storage ?
– do the modules need to be cooled/managed in the exact same way with the same exact hardware ?
– what are the differences between or what are the requirements for “automotive grade” and “the rest” ?
– what are the costs to certify these modules/packs for the different types of usage ?..

Remember the good old days, when the Model 3 was supposed to be priced starting at $50,000?

Remember the good old days, when a brand new Mustang for $2,500 USD?

I certainly remember when Tesla released their first price for the 40 kWh Model S back in 2009. It was $57,400, under 50K with fed. rebate:

http://www.autoblog.com/2009/03/26/tesla-model-s-50-000-ev-sedan-seats-seven-300-mile-range-0-6/

But that was in 2009 dollars. And just like that 1965 Mustang that sold for $2,500, this thing called inflation just keeps raising prices.

This is actually very easy to calculate. So easy that the BLS provides a website to figure it out:

http://www.bls.gov/data/inflation_calculator.htm

$57,400 in 2009 dollars is now 7 years later the same as $64,600 in current day dollars. So currently (in inflation adjusted dollars) you get a 60 for only $1,400 more than it used to cost to buy a 40.

The rumored price increase, will cover the median inflation adjustment from now until the next price increase.

With the industry average for price increases of 2.5%-3% PER YEAR now the norm, this is actually below average price increase since the price was first set in 2009.

Obama says there is no inflation.

Except that formula doesn’t apply to EVs. Nissan Leaf was just under 30K in 2012. Same today but longer range. And new Bolt staying under 30K with even longer range.

Bolt is under 37k $.

Tax credit is tax credit. Not price rabate.

You must have missed the part where the $50K (AR) price was for the 40. And we’re talking about the 60.

Lots of prebuilt 75’s on the Tesla website. Perhaps they over estimated and now hope to push the lower price customers into some of these cars

Tesla has 250 of the 75’s on their “Inventory” list. That represents around 1% of Model S sales so far this year. It is a rounding error on Tesla US sales, and is not statistically significant.

Also, almost every one of those “Inventory” cars have hundreds or thousands of miles on them, or were just added to the list yesterday.

If I were to speculate wildly, I would guess that they are using 75’s for service loaners instead of 90’s or 100’s. That just seems like a smart business decision to me. It is cheaper to build 75’s than 90’s or 100’s. They make a much better choice for service loaners.

Why do you go straight to ASSuming that there is a problem with sales?

Suppose the upgrade cost to move from upgrade from the 60 to 75 will come with a $2000 decrease? As a result – price effectively remains unchanged?

I’d love to see a $2000 increase on the base model accompanied by a 5-600$ drop in price for the upgrade to 75kWh.

That didn’t come out right ..
I meant I’d like to see a $68.000 base model and a $6000 or less fee for the upgrade.

On the contrary, I bet this means one of two things. (1) The S60 and 60D will go up in price by $2K but the upgrade price to the S75 75D will diminish as well. It is hard for them to justify a $5500 15kwh powerwall when they charge an extra $9K for the same 15kwh difference in a car… especially when its already there to begin with and all they are doing is unlocking it. (2) And I think this is the most likely… The S60 and 60D are going away entirely and the $2K price increase represents the new price of the base model S75 and 75D. This would be GREAT news! Here’s why I think this is in fact happening. The margin on the S60 and S75 are completely identical unless someone decides down the road to upgrade and unlock their capacity. Tesla probably realized that the vast majority of people will not do this and if they did, it would be years later when the battery has degraded slightly. At this point, the person would be paying $9K for less capacity than before and it would be hard for Tesla to justify that $9K when the… Read more »

60 was too good of a deal vs 75….unless u drive a ton there’s no reason to get the 75 at that price delta.

“How lame does it look to be the leader in EVs and have your $66K sedan offer less range than a $37K hatchback. It’s plain embarrassing.”

Lame ? Embarrassing ? Wth are you talking about ?
You can pay for more and get it at the push of a button.
Also, if one don’t need mode, why would one buy more ?

I’ll tell you what’s lame: You comparing a Model S with a Bolt simply on the premise of both being EV’s.

This is how most people will compare EVs if they are new to the space. They will use few other measures. YES, the Model S is a far superior car in many many ways. It doesn’t compare to a Bolt on that scale. It is a luxury sedan. You don’t think there’s Chevy dealers right now telling their customers that the Bolt has more range than a base Model S? Of course they are. And to make matters worse, the S60 has a 75kwh battery sitting there! waiting to be unlocked. But for $9K?! Are you kidding me! Crunch the numbers, there’s no way Tesla gets more than 1 of 5 people MAX to upgrade later at $9K. I bet the number is even lower than that. If it costs you the same amount to make the car, and you know that you’ll only get that money on the upgrade in a few instances, why not just release the extra capacity and sell it for a few thousand more. You’re better off. Why do you think the X60 went away? It was barely over 200mi of range for $70K. It made no sense. People want range in EVs, plain and… Read more »

Since I (and presumably many others) got an email from Tesla this afternoon announcing this pending increase, I think this can be marked as “confirmed.” I’d take it as an effort to drive end of the quarter sales, but also a nod to the fact that it doesn’t make financial sense to put the more expensive 75 kwh battery in the car, software limit it, and sell it at a discount.

Once the model 3 comes out and has more range the 60kwh model S will probably disappear. By then it will probably be 75/95/115 kWh options….unless the battery becomes cheap enough to put the 100 kWh battery pack in every car and unlock the required range for the buyer.

Can confirm price increase. I received a marketing email from Tesla this morning confirming the price increase of the Model S 60; and the changes to SuperCharging program to no longer include unlimited free charging.