While many of us seeing an automobile price increase might get critical and spiteful. However, a little logical analysis (by Tesla) shows that the price increase is actually less than it “should” be:
“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.”
Fair enough.
If you want to get the car for less than that (well, I’m sure almost everyone wants the car for less than that — I should say, “if you’re planning to buy the car”), you can still get it for $57,400 by making a reservation before January 1, 2013… “as long as they finalize their order within a reasonable, predefined timeframe after being invited to configure their Model S.”
Deservedly, Tesla feels good about itself not raising the price too much. “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.” Well, one would expect.
*“In Canada, the base price of Model S will increase $2,600CAD and implementation will be the same as in the U.S.”