Signature Pricing versus Mercedes Benz E series and BMW 5 Series

[DaveVa]

I've now had time to let the announced Model S Signature pricing sink in a bit. While I am a huge supporter of Tesla and what it is trying to accomplish with the Model-S, I am a bit disapointed that it is not more cost competative with the very cars that they have asked to be compared.

I know I am not counting the long term fuel and maintenance savings in this equation - just the amount of money that would be needed for the actual purchase. Effectively, Tesla is putting a 20K premium on the car over its ICE competition (and that is after the tax rebate!). You can buy a cheaper Model S, just like you could by a cheaper BMW 5 series and a cheaper MB E-series, but I wanted to compare top of the line (but not M or AMG sport editions which would compete with the Signature Sport) with similar luxury packages. The gap becomes even greater if you facture in the the ability to negotiatiate a significant discount on list from either BMW or MB.

Just curious as to other people's thoughts....

TESLA
Model S Signature $87,900
Pano Roof $1,500
Total $89,400

BMW
My 550i Sedan
4.4 liter, V8 with TwinPower Turbo technology
Rear-wheel drive
Base MSRP $61,700
Tasman Green Metallic $0
Black Dakota Leather $0
Light wood trim $0
Convenience Package $1,700
Luxury Seating Package $2,400
Premium Sound Package $950
Heated front seats $500
Destination & Handling: $875
Total MSRP as Built $68,125

Mercedes Benz
The 2012 E550 4MATIC Sedan
MSRP* $59,790
COLOR
Exterior: Black $0
Interior: Black Leather $0
Trim: Burl Walnut Wood Trim $0

PACKAGES
Premium 1 Package Included with package
Premium 2 Package $6,900

OPTIONS
Panorama sunroof $1,090
Split-folding rear seats $440

BASE MSRP $59,790

TRANSPORTATION CHARGE $875

GAS GUZZLER TAX $0
TOTAL PRICE $69,095

[Doug_G]

Dude, it's an electric car. It's gonna be more expensive.

[Mycroft]

Plus, you should be comparing it to the non-Sig model.

Base 85kWh = $69,900
Metallic Paint = $750
Pano Roof = $1,500
Leather = $1,500
Tech Pkg = $3,500
Audio = $950
Total = $78,100

Now subtract the value of massive storage, unmatched 17" tech package, and the ability to bump up to a very impressive performance package for only $10k more! How much would it cost to bump the Beemer up the 'M' or the Merc up to AMG??

I think the EV price penalty is rather small in this comparison.

[Bearman]

I think you should wait and see what comes standard and go see it before you decide, you could drop down to a non sig if it would fit you better. The alcantara leather would add another $1000 to the bmw also the sig has got active air suspension standard and if you get any suspension upgrades to the bmw it could add another 2500-3800 depending on package also active steering would add another 1750 and so on. So just wait and see or drop down to a non sig, I think its too early to make an informed decision at this time.

[Robert.Boston]

I think the EV tax is rather small in this comparison.

Rather than thinking of there being an "EV tax", it's better to think of a hidden "ICE tax" in the form of higher operating and maintenance costs. I figure about $2500/year, which has a NPV of about $15,000, for my driving. Depending on your driving habits, that figure could be too high or too low. Tack on that $15,000 to either the BMW or MB, and you quickly pass the $78,100 that Mycroft computes.

[NigelM]

It's a small price to pay for saving the planet.....

[ckessel]

It's a small price to pay for saving the planet.....

While I understand the sentiment, you have to realize this means almost nothing to the US population at large and will have a correspondingly zero impact on Tesla's ability to ramp up sales. If EV's can't be competitive on tangible costs alone, they won't sell beyond a very tiny niche. Taking fuel and maintenance into consideration, I think EVs are pretty close, but appealing to "saving the planet" is going to get you eye rolls at best and actively turn people off at worst.

The biggest problem is sticker shock. History as shown time and time again people will buy cheap crap repeatedly rather than expensive quality once, even if over the long term the cheap crap costs more.

[NigelM]

While my remark was somewhat tongue in cheek, IMHO in many ways it's a valid point. Groundbreaking is always going to be more expensive; low cost will only come through volume and it will be many years before EV volumes come anywhere near ICE volume. Until we as consumers start investing in the future, through our purchase decisions, the EV market will never take off.

The price comparison in the OP is one of apples and oranges.

[Mycroft]

There is still an EV premium, and admittedly these are not mass consumer vehicles, but the premium is the lowest it's ever been.

I made the point elsewhere that a $100,000 Performance Model S is pretty damned close in both price and performance to a Porsche Panamera 4S. The 4S is a bit slower at 4.8secs and a bit more expensive, but they're darn close!

[Arnold Panz]

Rather than thinking of there being an "EV tax", it's better to think of a hidden "ICE tax" in the form of higher operating and maintenance costs. I figure about $2500/year, which has a NPV of about $15,000, for my driving. Depending on your driving habits, that figure could be too high or too low. Tack on that $15,000 to either the BMW or MB, and you quickly pass the $78,100 that Mycroft computes.

Right -- this whole thing is an apples to oranges comparison because of the substantially lower operating costs of an ICE. And unlike, say, a Toyota Camry to compare to the base price Model S, the repairs/maintenance on a high end Mercedes AMG or BMW M-class are much more expensive, plus you have to use premium (93 octane) gas. A $20k-$30k price difference up front probably makes them about equivalent over a 4-5 year period of ownership.