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Am I wrong? Tech package now $7,500?

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Before today, the tech package was $4,250 and included all of the auto pilot hardware.

Now, tech package is gone, replaced with the "Premium" package and is now $5,000 and does NOT include Auto Pilot. You have to pay another $2,500 for that. So what was $4,250 yesterday is now $7,500 today?? WOW

What's worse, is the new "Premium" package includes less than what the previous Tech Package did, aside from the Auto Pilot, as some of the tech package items are now standard and included in the base price. So really, you're getting far less for A LOT more money.

Don't quite understand the thinking on that one.

I was frustrated at the random price increases just a few weeks ago and now this. I know it's all about supply and demand, but Tesla's prices have been increasing at such a great rate that they're pricing people out of the car. Sure, most Tesla buyers have money to burn, but there are still several of us out there that stretch to get this amazing car.

Just look at some of the price increases over the past year....

Tech Package originally $3,500, then went to $4,250 which it remained at until yesterday, now it's effectively $7,500 today = 76% increase overnight
Sound package used to be $950, now $2,500 = 163% increase
Air Suspension used to be $1,500, now $2,500 = 67% increase. (Was $2,250 yesterday)
Paint upgrade was $750, now $1,000 after previous price increase a few weeks ago. 25% increase.
Dual Chargers, from $1,500 to $2,000 = 33% increase and now you have to have your car torn apart after it's built to install it.
Rear facing seats, from $2,500 to $3,000 = 20% increase.
Can no longer get a HPWC as part of the new car order, hence no 4 year warranty on it. Fortunately I got in before that changed as my unit just went out and I got it replaced under warranty. Under the new system, I would have been paying $750 since it was over a year old.

Not really a price increase, but am puzzled that you can get the next gen seats in front for $1,500, but in the rear, they're $3,000????

Certainly, US inflation has not increased at anywhere near these rates.

I know Tesla is like no other car company. And apparently they just charge what they want and what they can get away with. As long as people keep paying it, they'll keep jacking up the prices. Most car companies want to make a certain percentage off each part and charges exact figures for each item to meet that goal. Tesla just rounds everything up. Chevy, Ford, Mercedes, BMW, etc. all have prices rounded to the nearest $1.00. Tesla seems to round up to the nearest $250 before, now $500. I believe in "market value", but I also believe in being fair and reasonable. These kinds of increases really are just forms of rape to some people and actually quite annoying. I don't know, maybe because they've taken two extra years to finish the Model X, they have to start jacking up the prices on the only car they do have ready to deliver to make up for the losses?

It's an amazing car and I absolutely love it, but unfortunately will have to be the last one I own. I barely could afford my 2013 at those prices. My $92,000 car then would be $107,000 today. Another few months at this rate and it will be $115,000.

Looks like their phasing out the RWD only cars as well. First to go was the P85. No longer an option. Next was the 60. You know the 85 is next in line. Thus costing everyone another $5,000 that want's an 85kwh battery.

Another thing that doesn't make sense, the base model is $5,000 higher than the previous 60 kwh and you get dual motors. So, same price increase as going from an 85 RWD to an 85D. Yet, the base model just got an extra 15kwh worth of battery. 85D pays the same price for dual motors, but doesn't get the increase in battery size.

Also read somewhere else, the Alcantara headliner is now included with the P85D, but one of the most common options that adds it to all other models is $1,500. That same option is also $1,500 for the P85D, thus you now pay twice to get the Alcantara headliner if you want that option package it's lumped in with and are buying a P85D.

Again, I absolutely love the car. There's nothing better on the road. But I'm just baffled and annoyed by some of the things Tesla does. Makes absolutely no sense.

One last example, not related to new car sales. A friend with a near brand new Tesla just had it totalled out by the insurance company over a rear bumper and front bumper with some fender damage. He got rear ended and shoved into the car in front. No frame damage. Could have been fixed for around $15,000. I could have picked up the salvaged car for $15,000. I called Tesla to ask them if I could just take the battery out of the car and put it in mine. My car is 2 years old and only charges to a 244 mile range now. A new battery would get me back to 265. I had a loaner car last week and was able to go round trip without charging to a common destination. In my car, I fall just short every time. Would love to have the new battery and not have to worry about charging every time in my own car. Anyway, they said they won't do it. Even though they proved it takes all of 90 seconds to swap out the battery. They said if I did it, they'd void my entire car warranty. Even if I let them inspect the "salvaged car", which is still fully drive-able by the way. Again, just another item that is not "reasonable" and VERY annoying.

I'm honestly really scared of keeping my car after the warranty runs out. Tesla has made it clear that it's their way or NO way. Once you're on your own dime for repairs, I can only imagine how expensive it will be! $600 for the yearly service is a good example. I found out what they did for that $600 and was quite surprised that it was $600 for something that literally doesn't take them more than an hour to complete.

Sorry for the rant. Just hate to see such an amazing car be priced out of most people's reach, even those willing to stretch their finances to get one. Maybe, once all the rich guys have their toys and Tesla is left to sell to the regular folk, and none of them can afford the new prices, maybe then, they'll readjust their thinking. As it is now, people just keep paying the new prices and Tesla will just keep increasing them for no other reason than "Because we can" for as long as people keeping paying it.

I'm also reading that people that ordered a car yesterday are being charged a $500 change fee to alter their order so they can take advantage of the new features that became available today. Really? You're selling a $100,000+ car and you're going to annoy your customer over $500??? Seriously???? Especially considering that if they make that change, it very likely means their going to spend more money on the car than they did yesterday!! Again, Tesla's way or NO way.

Also, just read, the auto pilot hardware is already in every car built. All they have to do is enable it remotely. $2,500 to enable it. Oh, and if your tight on cash at the time you order and decide to hold off on it, it's a $500 penalty to "remotely enable" it after the fact.

We all need to remember the old phrase, "the customer's always right".
 
While there have definitely been some price increases in the time I've been pricing out my future build. I don't agree with all of your math.

If I'm not mistaken, the base price was rounded down from 98170 after federal rebate to 97500. The pano roof came down 1000 to 1500. Things previously in the tech package became standard with a decrease in the base price of the vehicle. The tech package was reduced in price because some of the lighting and non-tech related things were moved to the expanded premium package. IIRC the premium interior was $3500? So what was 7750 is now 7500. However, the options are more logically dispersed. People who want navigation aren't forced to get the tech package. People who want autopilot aren't forced to get enhanced lighting.

These are changes that a conventional car company might release with a model year but we don't have to wait until 2016, we get them on the fly.
 
I'm also reading that people that ordered a car yesterday are being charged a $500 change fee to alter their order so they can take advantage of the new features that became available today. Really? You're selling a $100,000+ car and you're going to annoy your customer over $500??? Seriously???? Especially considering that if they make that change, it very likely means their going to spend more money on the car than they did yesterday!! Again, Tesla's way or NO way.

This part, at least, is not true. If you're still within your week after ordering you can make changes without any cost (I confirmed this with my dealer today). They do warn you that if you choose to switch your order to the "new" options (including the new colors), you will lose all of the old pricing and options and will be stuck with the new ones, but there's no change fee for altering your order within that first week.
 
They need to make money and things become more expensive. Clearly they are adjusting pricing to achieve a satisfactory return and ( with the advent of the s70 ) they are at least paying attention to the entry level pricing. Also, the reality is that Autopilot is not really necessary for 95% of drivers, so there is no real issue with not ordering it for most people. I really don't see what the problem is.
 
Yes, you are wrong.
As you said, the tech package no longer exists.
A number of the items in there are now standard, essentially lowering your price, not raising it.
You don't need the premium package to get the autopilot stuff, so I am not sure where you are getting the $7500 from.
 
It's a simple matter of supply and demand and the market (not customers) dictating prices. Tesla knows they will lose some customers whenever prices increase. However, they are selling each car as it comes off the assembly line (in fact even before that) and that's likely to continue for the foreseeable future. So those who can't afford the price increases, but want a Tesla, will be a prime target for Tesla when the Model 3 is ready in a few years. For now, however, it's either pay the current price or don't. No use complaining since it won't change a thing.
 
@Luvnmyts. Yes. Necessary hardwares are already there. But you are paying for "auto pilot" software development, Tesla's liability coverage for "auto pilot", warranty support, and etc.. Not just turning on sensors.

If all softwares are free, there will be no Microsofts, Oracles, Google, and etc.
 
@luvnMyTS: Yes, you are wrong. Tech pack have not been replaced by Premium pack. Premium existed before (called Premium Interior Package) and most things in old Tech Pack are now included in the standard price, no need for any package.

You are wrong on many other points also but I will only answer your first question that is also the header for the thread.
 
I re-priced my p85D with almost same configuration I have now. If I include premium package to get the power liftgate and LED cornering lights I have now, the price is ~2500 more for a ~123k build, but I get the premium leather interior and premium lighting, which I do not have now. If I omit the premium interior, it is ~2500 cheaper, but I do not get the cornering lights and power liftgate. I would say the price is neutral, just different grouping. As already mentioned, standard configurations get much more for the base price.
 
Tesla actually lowered final price for options people commonly order, you just lose the power liftgate and interior lighting b/c it was moved to the premium pkg. I agree w/the other replies that your logic is a little flawed, but I respect your passion and your car looks great! Those rims look incredible w/the blue, great stance, congrats!
 
Depending on your configuration the new pricing can be higher or lower or neutral. I can see how people that want the power liftgate are annoyed that it will cost $5000 now. Anyone stretching to get a base Tesla now needs to stretch another $5000 as well. But, the 70D owners will be getting a LOT more car for that $5000.

I do wish that Tesla would again offer the HPWC and dual chargers with a four year waranty.

GSP
 
I was pricing out an S85 before the 70D and the new 70 fits my desires better so the pricing is lower but being in Canada we're raped on just about everything (Tesla prices are 13% higher here then add another 15% tax on everything) so I'm going to have to wait. Used Model S pricing is going down but we have little to chose from up here and we can't import US models due to Tesla restrictions. Not that it matters anyhow, the exchange rate being 28% then add another 15% tax on imports plus fees. Might as well buy a new one...
 
I feel like the price went down, since they added most of the tech package to the standard car. The only thing I wanted in the tech package was nav, but couldn't justify the expense. (Then I read all the complaints about the nav, but that's another story.) Now, for no extra money my car would come with most of the tech package, but not the power lift gate which is an annoying feature to me anyway.

The tough choice for me today would be if I should save $5000 by sacrificing 25 rated miles, some front trunk space (I use it all the time for instruments that would no longer fit) but gaining AWD (better for pulling into traffic, and snow - over 100" this year) and a slightly faster car. I'd probably end with the 70D, so it'd be less today than I paid 1.5 years ago.
 
Wow. Has anyone stopped by the AUDI, Porsche, BMW, or Mercedes-Benz websites lately to see their pricing on options packages and accessories for their flagship vehicles? Even after what may be substantial price increases, the Tesla Model S, at every trim level, remains a bargain in comparison.