Tesla Reduces Price Of Model S, X 100D, P100D

AUG 30 2017 BY ERIC LOVEDAY 40

Tesla just lowered pricing on its top-end versions of the Model S and Model X.

The automaker says it was able to achieve efficiencies on these high-line versions and is now passing on some modest discounts to buyers.

Tesla

The Tesla Model S P100D

The price drop breakdown is detailed below:

  • Model S 100D price drops $3,500 from $97,500 to $94,000
  • Model S P100D with Ludicrous sees $5,000 price reduction. Now starts at $135,000
  • Tesla Model X 100D price cut of $3,500. Starts at $96,000
  • Model X P100D with Ludicrous price slashed by $5,000. Starts at $140,000

These aren’t significant cuts for ~$100,000 vehicles, but any reduction is welcome.

Teslarati adds:

“The price reduction is reflected in Tesla’s online configurator for both vehicles, and will apply to new buyers as well as existing 100D/P100D buyers that have yet to take delivery of their vehicles.”

Tesla is constantly changing prices on its various models. The automaker says that once certain efficiencies are achieved, it’s able to pass along discounted prices to buyers, so this high-line discount is just the latest to follow that line of reasoning.

Source: Teslarati

Categories: Tesla

Tags: , ,

Leave a Reply

40 Comments on "Tesla Reduces Price Of Model S, X 100D, P100D"

newest oldest most voted

Love it, incremental price reduction is what made the Model T great.

I think that’s a reasonable analogy, and correct. Though I don’t think the price reduction will be as drastic, 50% in 20 years.
But the principle is the same.

Right, it doesn’t have anything to do with demand petering out

More like trying to mitigate extremely high demand for the Model 3. Over 1000 net new Model 3 preorders a week with hundreds of thousands waiting in line means Tesla isn’t likely to get through the preorder line for another couple years. One way to attract high-end Model 3 buyers to the cars they can currently make faster is by dropping prices on the S and X.

It’s an almost 6 year old design that is still outselling cars there were released last year. Tesla has no problem selling them…

But it has probably tapped out on increasing demand. The S has about a 25% market share in its class of luxury vehicles which is as deep of a market penetration as can reasonably be expected. Given they recently got rid of some of the lower end optioned vehicles, and numerous articles on this forum have discussed how those moves were meant to differentiate the S from the 3, it is unlikely this move is primarily one to shift purchases over to S but certainly that will be some of it. So my take it is a little of both. Raise the average purchase price and differentiate a little by removing some low end, while also attempting to stimulate some of the more top end sales incrementally. Not terribly shocking. Just tweaking.

A reasonable assessment. I does have something to do with it, softening demand, but then the car industry as a whole is in a terrible slump, and I think Tesla can afford to do this.
Like you say, Tweaking.

@Someone-out-there said: “Right, it doesn’t have anything to do with demand petering out.”
——–

Wrong… the opposite is true:

Model S & X orders are up.

Tesla has for a long while said they plan on passing-on production efficiency savings as those savings are realized. Great to see Tesla following through with that.

..my above comment is assuming @Someone-out-there comment was meant to be /sarc.

If orders are up why are sales not up?

@Someone-out-there said: “If orders are up why are sales not up?”
———

Wrong… the opposite is true:

While it’s true the overall auto industry is down in new car sales for Q2-FY2017 vs Q2-FY2016 Tesla is an exception with sales up 53%.

“…Tesla (Nasdaq:TSLA) delivered just over 22,000 vehicles in Q2, of which just over 12,000 were Model S and just over 10,000 were Model X. This represents a 53% increase over Q2 2016…”

source: http://insideevs.com/tesla-reports-q2-sales-22000/

Sales are flat from the prior half year.

Not this again. Are you still whining about Q2-2017 dip in deliveries caused by a delay in rolling out the 100 kWh packs, and the increased production of service loaners ahead of the Model 3 release that don’t get counted as sales?

https://electrek.co/2017/07/07/tesla-vehicles-transit-q2-2017/

Even with the delays and diverted production units to service centers, Q2-2017 was a MASSIVE year-over-year increase in deliveries.

I can’t wait for zzzzzzzz to show up and whine out monthly deliveries dropping in the US, as if he/she/it didn’t know that Tesla batch delivers to different parts of the world, intentionally causing US deliveries to go through 3-month up/down cycles.

You guys are intentionally staring at individual trees, determined not to see the forest — with the massive sustained growth and expansion unparalleled in the automotive industry.

Hopefully, “Someone”, you meant just a drop in demand. “Petering out” is what the Tesla haters have been predicting for years. I don’t think you’re a Tesla hater, and demand actually fading away seems rather unlikely to happen anytime soon! 🙂

But Elon said that demand has only picked up since the Model 3 delivery ceremony… just as we expected. So that suggests the price drop has more to do with marketing, just as previous drops in the price of Tesla cars have been.

They should make Full Autopilot standard on S and X. Currently it costs $5000 + $3000.

Especially since people are buying it on the hope or prayer that they will ever get to use it…

True to silicon valley product, price keeps falling while the product keeps getting better.

It’s actually risen, with battery size:
AWD Model S (the 85) used to base at ~$88k, not $94k
AWD Model S “P**D” versions used to base at ~$113k, not $135k

Regardless, I’d argue range is still the most valuable option you can buy, in an EV. Tesla has one car costing 25k less than another, that offers 61 miles *less* range. Really tough to know how that will play out, once all the wheels are turning.

If buying for value retention, especially where it gets cold, the 310 mile Model 3 is a very good bet.

Actually, the price hasn’t gone up when measured in real dollars. (all numbers based on official CPI calculator)

$88K in 2013 is now the same as $93.5K today in real dollars.

$113K in 2013 is now the same as $120K today.

Meanwhile, Tesla has made upgrades to battery, performance, standard features, etc. Buyers are getting much, much more for the same inflation adjusted dollars.

Price adjustments for inflation isn’t the cost of the car going up, it is the value of your dollar going down. Tesla isn’t in charge of the value of your dollar dropping.

Sounds to me like motor production and pack assembly. Ludicrous is a modification of things like contactors in the pack, so this fits as well.

However, if they are trying to convert Model III reservations, I think they are pushing the used Model S market for that objective. Looking at the configurator, the roof is a standard glass or a sunroof glass. That’s confusing. And heavy.

The car has poor headroom in back and it’s much worse without the glass roof. Heavy or not most customers should buy the glass roof on the S. The 3 appears to have a similar problem although as a smaller car the expectation of rear headroom is not as large.

Good that they have lowered those prices, but instead they could have added some options as standard.

Maybe next time.

Tesla increased content earlier this year too, making some options standard that used to be an additional charge (power lift-gate and all-glass roof).

https://electrek.co/2017/04/17/tesla-model-s-price-change/

Tesla is definitely going after the ICE market strongly between the price cuts and the added standard features — while their gas competitors are increasing prices for inflation.

Just leaving the price the same would have effectively been a roughly $2000-2,500 price CUT in real dollars (after accounting for inflation).

Meanwhile, earlier this year BMW increased their prices by about 2% for inflation across the board, with their top of the line M760i xDrive Sedan getting a $2,900 dollar price increase from $153,800 to $156,700.

For the Model S P100D with Ludicrous, this is more like an $7-8,0000 dollar price cut when compared to the BMW price increases. This is actually quite an aggressive move by Tesla to further cut into the sales of their competitors, despite the efforts by some to dismiss these price cuts.

http://www.bimmerfest.com/news/969627/bmw-increasing-price-for-2017-amp-2018-models-starting-april-1st/

Still, looks to me they are keeping the price of the “X”, and “S” far away from the price of even a loaded model ‘3’ – probably to avoid cross-shopping.

As many have said, the only low-cost “S”‘s are the used ones.

Think it’s far less about “converting” M3 buyers and more about simply making the S/X more attractive…

Yeah. Tesla keeps alternately lowering prices, and adding more features in as standard equipment while raising the price, on various trim levels of the Models S and X.

The fact that Tesla is now gearing up production of the Model 3 isn’t going to change that, and not all price changes should be seen as a result of Model 3 production.

The MS 75 or 75D is a really good value prior to these cuts–it was $23K for another 25kWh of battery for the 100D which was too much of a jump for a larger battery.

Meanwhile the charging network is still expanding which decreases the need for the 100D battery, unless you do long trips in the winter or areas without a Supercharger nearby.

Four years ago, Tesla announced they had signed a 4-year deal with Panasonic to supply batteries for the Model S and X. I wonder if this price drop reflects a new lower contract extension with a lower price?

Purely speculation, with no other evidence…

Nice to see prices moving down. Hopefully those reduced prices will get more people to pull the trigger on a purchase.

It is nice that Tesla dropped the price.

But for a car that “has only supply constrains”, why bother with price drop?

Every dollar dropped was a dollar that could be going directly to the bottom line that Tesla surely need right now.

It sounds to me that Tesla actually has more supply capacity than demand. So to stimulate more demand, the drop in price can be more than made up by the increased sales without more capital investment.

Of course, those are the “high end” models anyway so either way they are profitable.

ModernMarvel Fan asked:

“But for a car that ‘has only supply constrains’, why bother with price drop?”

Tesla has been carefully managing demand for years, making sure demand stays ahead of supply… or at least, it was until fairly recently. Raising or lowering prices is one of the ways they manage demand. Your question doesn’t make much sense, MMF; Tesla has been alternately lowering prices on the MS, and raising them when adding in more standard features, for years. That’s also true to some extent for the MX, altho less so since it hasn’t been in production that long.

* * * * *

I’m not sure that demand for the Model S (and X) is still ahead of supply. Certainly with Tesla continuing to rapidly increase production every year, there had to be some point at which supply could match demand. I think the signs were that this happened several months ago.

Tesla’s increasing use of advertising (now it’s even using some billboards) suggests that by now, demand isn’t much if any ahead of supply.

” Raising or lowering prices is one of the ways they manage demand. Your question doesn’t make much sense, ”

So, you are basically agreeing with me that Tesla has more supply than demand that it isn’t “still” supply constrained as some people have continued to claim.

Good… We agree.

What’s awesome is this drives the corresponding CPO market down in price, too. (For poor folks like me)

Very good point!

Now Model-S 100D is cheaper than Benz S550e plugin (anemic with 10 mile range) and you can drive 335 miles in it.

Battery prices has gone down and so they are reducing prices. Even as the Sedan sales have taken a knockout, Model-S sales are increasing.

The data we have shows S and X sales to be flat year-over-year.

https://www.forbes.com/sites/chuckjones/2017/04/03/teslas-first-quarter-sales-point-to-flattish-demand-for-model-s-and-xs

Why is everyone saying otherwise? Do people have data which contradicts this?

Given their market position flat sales aren’t bad. But it seems like the rapid growth phase for those vehicles is over. They’ll likely need a real refresh to keep from losing ground as the Germans finally jump into the market in two years.

Your OWN SOURCE contradicts your claims of year over year numbers. Did you bother reading it?

Here is them explaining to you how massive their YOY is for Q1 2017:

“At 25,000 this would be a 69% increase year over year”

Here is them explaining to you how massive their YOY sales increase is for H1 2017:

“Vehicle delivery guidance was for 47,000 to 50,000 in the first half of this year so the company is on track to meet this goal. This would be an increase of 61% to 71% year over year”

Now lets hear how you really didn’t mean Year over year, so we should ignore these impressive figures not seen anywhere else in the automotive industry, and we should focus on something else. Like some quarter to quarter numbers where you completely ignore the seasonality of car sales, and remain intentionally blind to one-time delays as if you had no idea they even existed.

You are so boring and predictable and wrong that it isn’t even funny.

Here is the link and look for YTD-June sales.

http://ev-sales.blogspot.com/search/label/World

Tesla sold 35 663 vehicle in just 6 months worldwide which is much higher than what they sold last year.

May be Forbes is reporting just US sales. Tesla could have allocated more units to other countries.

Hurricane Harvey’s effects. Most of mainstream media will not talk much about this.

“Harvey Releases 2 Million Pounds of Pollutants From Refineries, Plants”

https://www.nbcnews.com/storyline/hurricane-harvey/harvey-releases-2-million-pounds-pollutants-refineries-plants-n797586