Tesla Motors (NASDAQ: TSLA) 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 increase announced today will be for new reservations starting January 1, 2013. These new reservations will begin deliveries several months later, which means the new prices will actually go into effect over four years after Tesla originally set base pricing for Model S.
“We believe it is a positive reflection on our design process and disciplined, long-term planning that enabled us to increase prices for the first time in four years at only half the rate of inflation,” said George Blankenship, vice president of worldwide sales and ownership experience. “As a company we will always strive to deliver our customers the most innovative cars in the world while minimizing price increases as we have done today.”
This price increase will not apply to anyone who has or makes a reservation by end of day on December 31, 2012… as long as they finalize their order within a reasonable, predefined timeframe after being invited to configure their Model S.
In Canada, the base price of Model S will increase $2,600CAD and implementation will be the same as in the U.S.