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New Options Essentially Raised my Config by $3,800 :(

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So I've had a reservation since May of 2012. My plan was to finalize my order in January of 2013, but my endeavor to purchase a home has taken FAR longer than I could of ever expected. So at the advice of my mortgage broker and real estate agent, I've held off finalizing the order as it would jeopardize my loan.


Since then, I've had to endure three price increases:

- February 2013: $2,500 price increase (announced in Dec, but didn't take effect for me until Feb)
- June 2013: $1,750 total price increase on the 21' rims & air suspension (which I tearfully removed from my config afterwards)
- August 2013: $3,800 total price increase on the individual options that I had selected for my order

So in all, I've had my price increased by $8,650 in as little as 6 months time. Here is a more detailed breakdown:

February 2013
- $2,500 general price increase
June 2013
- $1,000 increase for 21 inch rims (from $3,500 to $4,500)
- $750 increase for Air Suspension (from $1,500 to $2,250)
August 2013
- $1,550 increase for sound package (from $950 to $2,500)
- $1,000 increase for Panoramic Roof (from $1,500 to $2,500)
- $1,000 increase for Premium Interior Lighting (was included with the Tech Package before)
- $500 increase for Fog Lights (was included with the Tech Package before)
- $250 decrease for Tech Package (from $3,750 to $3,500)


I think Tesla has a hot product, so I can't disagree with the increases (supply and demand). But being a man of modest means, I've had to cut back on options that I was willing to spring for not too long ago. I'm still going to buy the car, I've just had to tearfully remove the 21' rims, air suspension, and leather to keep within in my realm of affordability.

But I can't complain... out of curiosity, I calculated the increase for someone who wanted the Performance edition... Before August 1st, just about everything was included with the Performance edition. But now nothing's included!! So if you want the same options that were included prior to the 1st, it will cost you an extra $11,600 over what it would of cost you just 4 days ago. Ouch...

Here is the breakdown for the Performance edition:

- $2,500 for the performance leather (which was included before)
- $4,500 for the rims (which was included before)
- $1,500 for the spoiler (which was included before)
- $1,600 for the carbon fiber decor (which was included before)
- $1,500 for the alcantara headliner (which was included before

So I don't feel so bad since I wasn't going for the Performance edition anyway, lol
 
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Just priced my January P85 and it appears that with similar options the price has gone up between $10K to $13K. Some of the options may be upgrades over what I have - so the actual difference may be a little lower.

However, the downside is that there are some new features that weren't available back then - such as the aero wheels or the parking sensors - and adding those now (if offered) will cost considerably more as an upgrade than when selected with a new car.
 
It appears to me that the base price for the performance edition went down by $5,000, but of course there is less included, now. For leather, some of those things weren't available before, like leather on the dash. Pretty sure my car only has real leather on the steering wheel, armrests, and seats.
 
The equivalent to my P85 delivered at the very end of December is now about $16,000 more! Tesla is really socking it to you on the luxury upgrades, particularly the leather. The leather seats with alcantra, the interior leather trim, and alcantra headliner that was "included" in my P85 is now $6,000. Another $3500 for the tires. $1500 for the CF spoiler. All included in my model.
 
I had the original pricing since I reserved last year. I took delivery in March 2013. When I include the sales tax the final amount to buy my car today is almost $20,000 more than what I paid in March.

I am wondering, are they raising prices because they can, or because they have to.
 
My speculation: as a business, doesn't Tesla Motors state that they want to make 25% gross margin, and break-even on service? So I'll believe that and give them the benefit of the doubt that these price increases are mostly because they have to (in order to match the business model) rather than because they want to increase margins above and beyond the stated goal.

Some of the higher prices on existing options (e.g. pano) may be due to higher costs or higher number of warranty repairs than expected.

Other increases may be due to customer feedback. The more expensive audio package, for example, could be in response to mediocre reviews of the previous audio package.
 
I think they're raising prices because they can. They want to hit 25% gross margin and they have the demand to get there.

I had the original pricing since I reserved last year. I took delivery in March 2013. When I include the sales tax the final amount to buy my car today is almost $20,000 more than what I paid in March.

I am wondering, are they raising prices because they can, or because they have to.

- - - Updated - - -

Your right!

I just confirmed this with the West Hills and Santa Monica stores. The leather they're offering as a $2,500 option is actual leather. What the cars come with now is the fake stuff and they will continue to come with it unless you want to upgrade to the real leather.

I think they need to clarify this more on the design studio, because its not clear that the car will come standard with fake leather.


For leather, some of those things weren't available before, like leather on the dash. Pretty sure my car only has real leather on the steering wheel, armrests, and seats.
 
Performance cars, at least those delivered through March, 2013, included real leather on the doors and lower portion of the front dash. The regular version had synthetic leather on the lower portion of the dash.
 
Well, this thread made me go look at the design studio. Sure is different from when I configured, and my car now costs $2,150 more, but does not include the second charger. I would really be miffed if I ordered today and had to take the HPWC in order to get the second charger. The HPWC would be useless in my home rental situation.
 
Well, this thread made me go look at the design studio. Sure is different from when I configured, and my car now costs $2,150 more, but does not include the second charger. I would really be miffed if I ordered today and had to take the HPWC in order to get the second charger. The HPWC would be useless in my home rental situation.

When I visited the Santa Monica store today, I asked them about the Twin Charger/HPWC combo pack and why they chose to combine them into single a package. They said it was because you'll never use the Twin Chargers unless you have a HPWC, and that if you wanted to add the Twin Charger later on, you could do so.

My problem is that I wanted the Twin Chargers NOT because I was going to use a HPWC right now, but because I might need to use one later on. I'm in the same boat as you. My Condo complex is not the ideal place for an HPWC, nor do I need one while I'm living in the city. But I'm trying to move to the suburbs where my commute could push around 150 to 200 miles a day. When I move, I'll need an HPWC to replenish the battery quickly so that I can use the car for after work activities without the range anxiety. So I wanted my car to come straight from the factory with Twin Chargers, that way I wouldn't have to spend $3,600 having it installed aftermarket.

I guess ill just have to buy the package and store the HPWC until I move.
 
I think this is one Tesla will have to adjust shortly. There are too many cases, like yours; people who already have a HPWC, etc. forcing something onto people that's likely to wind up in landfill seems completely against what the company is all about.
Agreed.

As you and many others have pointed out:

Not being able to buy the Twin Chargers separate from the HPWC really doesn’t make any sense.

I think that if you and everyone else that feels this way point this out to Tesla they will listen to what you want. After all it it’s not at all unreasonable, and Tesla have backtracked on several things in the past. So I don’t see why they shouldn’t be able to accommodate this time around as well.
 
So I've had a reservation since May of 2012. My plan was to finalize my order in January of 2013, but my endeavor to purchase a home has taken FAR longer than I could of ever expected. So at the advice of my mortgage broker and real estate agent, I've held off finalizing the order as it would jeopardize my loan.


Since then, I've had to endure three price increases:


Here's another option for you. These new configuration options will cause a number of owners to want to upgrade, bringing a lot of used Model S cars onto the market. Why not buy a used one with 5-10K miles on it? You could also buy one of the used cars Tesla has taken in on trade toward a "loaner car" upgrade. Call Tesla Ownership to find out what's available.
 
One of the ways I rationalized Tesla's lack of optional features was that what they did offer was cheaper than comparable options from the competition. That is no longer the case now.

$7800 price increase for my chosen config (before adding in new options I want)!

In a bad mood right now. Need a couple days to calm down, I think.

Any official word from Tesla on these changes? Are the repriced options (like the sound studio) the same as before, or are they revision 2?
 
The increases are annoying to me as the go against Tesla's stated goal of bringing EVs to the masses. Instead they are pricing Model S further and further away from people who would like one but are on the edge of affordability. Maybe Tesla just had optimistic pricing before, now they are learning how much it costs to build a car? There are just plenty of rich people Tesla can sell to?
 
When I visited the Santa Monica store today, I asked them about the Twin Charger/HPWC combo pack and why they chose to combine them into single a package. They said it was because you'll never use the Twin Chargers unless you have a HPWC, and that if you wanted to add the Twin Charger later on, you could do so.
How wrong they are. Out here, at least, there are Roadster 70 Amp HPCs usable with an adapter, albeit an expensive one, and some Roadster HPCs have been converted to J1772. Stores and service centers have the HPWC and a Roadster HPC, and the Canadian Sun Country Highway has several Clipper Creek 70 Amp J1772s.

When I configured, there was no question - dual chargers, even though at home I am severely limited. If I plug into my electric stove outlet, I can do a whopping 32 Amps. In the garage, 240 volts at 12 Amps - 8 rated MPH.:crying:
 
The increases are annoying to me as the go against Tesla's stated goal of bringing EVs to the masses. Instead they are pricing Model S further and further away from people who would like one but are on the edge of affordability. Maybe Tesla just had optimistic pricing before, now they are learning how much it costs to build a car? There are just plenty of rich people Tesla can sell to?

i agree, i was BARELY able to afford one being 30, now forget it, the same config costs well over $15-20K more, the people that i got interested in buying the car just gave up, its beyond their reach, Tesla just screwed themselves over for a ton of potential sales.

this is not how you get people to adopt a new technology, it has to be the same price as the next competitor but better value not cost more and have less.
 
the people that i got interested in buying the car just gave up, its beyond their reach
Yea, folks that I might have gotten interested in the car would have been stretching to begin with. The bottom end is still there, but a car with features equivalent to their $35k car in terms of leather heated seats, navigation, etc all push a Model S out of all reasonable reach. I hope Tesla does well with the new pricing so they can get to Gen3, but they've really gone away from the "premium" category back into super car territory.

If I were coming in now, I wouldn't buy one. Even knowing what I know as an owner.
 
If I were coming in I'd still buy one but I'd probably wait another 6 months to make sure my finances could support the extra cost (aka TSLA stock gains supported it).

It's too bad Gen III isn't out any time soon as people could get that car if the Model S was now too much. This way Tesla could still get a sale (I probably would've preferred a Gen III for cost/size reasons but didn't want to wait).