Tesla Unveils New Pricing for Model S
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.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.