Model S price justification (why so expensive?)

[richkae]

How many of the following did you buy when they first came on the market?

smart phone
flat screen TV
mp3 player
cell phone
laptop computer
dvd player
cd player
VCR
walkman
microwave oven
automatic dishwasher
...

Every one of those items was initially much more expensive than the item it replaced.
To some people they were so desirable they were worth far more than the item they replaced, others waited.

My decision to buy a Model S is based on many factors, including the quality of the driving experience and the utility of the car.

One hard to quantify factor is that I feel strongly about where my dollars go. I do not like where dollars spent on gasoline go and what they do.
I've done the break even calculations and they are not as important to me as knowing that my dollars are buying technology from a domestic upstart company instead of gasoline.

[JakeP]

I think this is an interesting thread and reflects the diversity of Tesla enthusiasts and their reasons for being willing to purchase a Model S. The plain truth is that for less than $50K (Im being generous) you can purchase a brand new vehicly that has 99% of the functional capacity of any car more expensive than that. Of course that excludes specialty cars with bullet proof glass, smoke screens etc but I giess that doesnt represent function capacity. With that in mind any body purchasing a car for more than that amount cannot be justified from a purely practical standpoint. Every one who spends more than that will have their own personal reasons to justify the additional expense. It is illogical to try to tell one who finds a value in the beauty of a Picaso that their choice is a poor one.
One may decide that environmental concerns drive their decision or that the love the beauty or the novelty of the car. Some may quote the unique driving experience.
For me its a little of all of the above. First and foremost I believe in climate change and the role humans play and so I believe anything I can do to lower my carbon foot print is doing my part. I also believe in evil big oil and the efforts they will go through to thwart any efforts for this technology to survive. It pains me to see how much they can get away with and how duped we are to continue to supprt them. The only way for this technology to get over the hump is for early adopters to take the relative risk necessary to reach critical mass so that the infrastructure necessary to make it practical will be built. Lastly, I flat out love the beauty, elegance, power, performance and cutting edge technology of Model S. All of those factors have a value to me for which I am willing to pay $100K

Going back a bit, +1 to c2tb...very well stated. My reasons for buying a bleeding-edge 100K vehicle are comprised of the same spectrum that you cite here. And I do so with open eyes, fully aware of the risks involved...be it a lack of center console storage, or a network of superchargers that may never hit the midwest in the density my travel style demands.

[pharma5]

And I don't know what other people think it's worth to have the hand of God swoosh down to give you a boost whenever you press the accelerator, but I think that's worth a lot.

Argentina would say priceless:

[kevincwelch]

First and foremost I believe in climate change and the role humans play and so I believe anything I can do to lower my carbon foot print is doing my part. I also believe in evil big oil and the efforts they will go through to thwart any efforts for this technology to survive. It pains me to see how much they can get away with and how duped we are to continue to supprt them. The only way for this technology to get over the hump is for early adopters to take the relative risk necessary to reach critical mass so that the infrastructure necessary to make it practical will be built. Lastly, I flat out love the beauty, elegance, power, performance and cutting edge technology of Model S. All of those factors have a value to me for which I am willing to pay $100K

Nicely put.

[Zextraterrestrial]

How many of the following did you buy when they first came on the market?

smart phone
flat screen TV
mp3 player
cell phone
laptop computer
dvd player
cd player
VCR
walkman
microwave oven
automatic dishwasher
...

I bought none of them initially
some of them years later - cd, vcr, dvd, mp3 player
cell phone but got rid of it 10+ years ago
some of them I don't have and never bought- smart phone, flat screen tv, microwave, dishwasher

but Tesla Model S will be a different story

[smoothoperator]

The price of any car beyond a Honda Fit for a small car or Chevy Malibu, Toyota Camry, etc for a full size car is a matter of desire. The cost to build an electric car due to battery costs and engineering is very high still today. Thus a limited market.
For me an electric car is a near lifetime desire.

Any car is a matter of desire (for that matter any extraneous item in life besides food, clothing & shelter) you can take public transit. It does not make sense to call a Honda Fit essential but not call a Model S essential. They both are in the same category- automobile ownership (which in itself is not an essential item and a matter of desire). Price has little to do with it; any car can be considered a luxury!

[SByer]

The 911 has very nice driving bits - engine, clutch, steering. I could see calling them works of art - certainly they're one of the best examples of ICE drive technology. But the ergonomics of the non-driving parts were meh at best. Buttons, unlabelled buttons, everywhere! And an HVAC control system that defied logic. It was the best ICE car I will ever own. Had it for 6 years (and had saved up for a new one when an opportunity came along).

I traded up to the Roadster. Full torque at zero. Throttle latency 1/2 that of the 911. Better steering (doesn't need power assist, thank goodness). And, the interior is a better design, in spite of using cheaper materials. Much better driving in traffic, or in the twisties (regen on the go pedal). There are many, many little subtle things in driving an EV that just make it better, and it takes more than one test drive to figure some of those out. After three years, I do not miss the 911 one bit. I have an aluminum and carbon fiber rolling work of engineering genius - it looks simple in spite of the complexity.

I get where I'm going happier, in a better mood, and having had more fun with the Roadster than I would have with the 911. It's mobile therapy on a whole new level. Now what is that worth?

[NigelM]

Argentina would say priceless:

Hey, some of us are stil sore about that!

[spatterso911]

I'm just trying to understand for myself: why the car which in terms of luxury is so behind is so expensive? I've got used to some standards in luxury cars and I want to understand if very questionable advantage of electrical power overweights obvious lack of basic luxury options

AlexSV, given that you have driven the Model S (and hopefully, with your vehicular ownership pedigree, driven the Performance), you can surely realize that it performs on par, if not better than many of the sedans you have owned. I would say that if you are in the market for an CLS 63, E63, M5, S6 Audi, Porsche Panamera (S or S hybrid, Panamera Turbo), you would be hard pressed to find areas that these vehicles substantially outperform the Model S. All while costing virtually the same or less, and with an average operating cost that puts the competition to shame.

Your comparison of the 911 to a Model S is apples to oranges. Being in the market for one of the above vehicles does not make this a "stupid decision" when you look at the big picture. I still don't have a clear idea of why you are looking at a BEV, if Green values are not important to you. If you have issues or concerns about conventional autos that compelled you to consider a 100% electric vehicle, I challenge you to re-explore them and ask yourself if they really are important to you. If they aren't, then you will not be satisfied with the Model S, because many of the early adopters hold those values in high esteem and are an important part of why we are on-board with Tesla, irrespective of the size of the car, amount of interior cubby holes, quality of leather, or presence/absence of adaptive cruise control, lane departure, pre-collision avoidance, heated steering, or rear camera.

My current car costs over $95K, has none of the above, costs $70 to drive 240 miles, and will cost a small fortune to maintain over the next several years, just in simple maintenance. Just so happens to be a fast German car.

[gg_got_a_tesla]

Well said, spatters! Yes, those said values are just as important as price/performance/features when comparing the Model S with a fancy (German) performance car.

AlexSV, if you are merely playing the Devil's Advocate here, then, this is probably moot. If you are genuinely considering the Model S, then, don't stop with using traditional metrics alone when comparing with a conventional performance ICE.