Photo: via Green Car Reports
Tesla revealed plans to raise the price of the Model S through a message board on its website yesterday.The entry level price for a Model S is $49,900, and that’s after a tax credit. We don’t know how that’s going to change, because Tesla didn’t provide much in the way of specifics.
Telsa has been trying to get itself to cash flow positive. Raising prices is one way to get there.
This isn’t the first time Tesla raised prices on a car. It did the same thing with the Roadster, its first car.
Here’s the Tesla explanation:
Yes, we will be announcing a Model S price increase in the near future. However, there are a few very important points to understand about the upcoming price increase:
- The price increase will not apply to anyone with an existing reservation prior to the effective date of the price increase and who also configures their car and finalises their order within a fair, predefined timeframe.
- There will be a few “options package” changes as part of the price increase (meaning some things that are currently considered standard equipment may become part of an optional package going forward). These changes will not apply to anyone with an existing Model S reservation prior to the effective date of the price increase who also configures their car and finalises their order within a fair, predefined timeframe.
- All reservation holders who have “deferred” will receive an email regarding the price increase and will have the opportunity to keep current pricing and options packages by finalising their configuration and order within a fair, predefined time frame, similar to those who did not defer.
This price increase is planned to be announced with full details, effective dates, pricing and options packages in the next two to three weeks. We are starting to hear rumours about “a price increase coming soon” and want to assure current reservation holders that the price increase will not affect them as long as they configure and finalise their order within a fair, predefined time frame after being invited to configure their Model S. If a test drive is all that is holding you back from configuring your car, please make an appointment at a Tesla store near you.
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