Tesla Increases Prices for Existing 2008 Orders

tomsax · 01-15-2009, 08:35 PM

Yesterday, my wife and I got word that Tesla Motors was contacting owners whose cars were about to go into production because they are introducing new options and unlocking all remaining 2008 model year orders. We knew that VIN 214 had started production and we're 217, so that's us.

As it turns out, Tesla is adding one new option (performance tires) and raising prices on many of the existing options. For example, the HPC is no longer bundled and is now a $3,000 option (just like the 2009 orders), the destination charge increased from $950 to $1,950, and the SolarPlus windshield which was previously standard is now a $400 option. Also, the audio upgrades are no longer available separately, instead there's one big $3,000 option for everything, a $500 increase over the total cost of ordering them all separately.

These price increases apply to all 2008 model year orders with VIN number 210 and higher, and apply to everyone even though we locked in our options as early as last September.

More details and commentary are on my blog.

Tesla Price Increase - Tom Saxton's Blog

I expect an official letter from Tesla announcing this change in options and pricing tomorrow (Friday, January 16th).

SteveF · 01-15-2009, 09:12 PM

Simply put, this sucks.

graham · 01-15-2009, 10:43 PM

This does not make me very happy at all.

ETA: Typed and erased several rants. Summed up: This is very rude. And very possibly a deal breaker for me.

TEG · 01-16-2009, 12:04 AM

Now I guess we know why they just blogged about all the incentives.
I guess they want a cut of that $7,500...

Condolences to those of you who didn't get in before the cutoff date.
(But those who already took delivery might be lamenting the fact they they didn't have a chance at the Sport package).

doug · 01-16-2009, 12:06 AM

I can imagine that a lot of the affected customers must be pretty unhappy. I can only hope that Tesla Motors considered the balance between revenue and customer good will.

stopcrazypp · 01-16-2009, 12:16 AM

Quote:

Originally Posted by doug

I can imagine that a lot of the affected customers must be pretty unhappy. I can only hope that Tesla Motors considered the balance between revenue and customer good will.

I was thinking about what to say but it's along the same lines. I could see a lot of unhappy customers.

malcolm · 01-16-2009, 06:27 AM

Ouch.

Home recharging takes the biggest price increase. The fast charger is now a $3000 option and the (US only?) mobile charger has been cut to 120V only.

How's that for symbolism?

ETA: fair enough that they have to increase their prices, but not to locked-in customers!

Lancelac · 01-16-2009, 07:57 AM

Tesla always made pretty clear the options and pricing of such was not set until you lock in your car, BUT calling people well after they've locked in, a few days before their car goes into production is a bit much.

I was certainly not expecting the option prices listed on the 2009 spec sheet on Tesla's website to be the same as I'm going to pay (I'm #590), since I knew there would be an updated list of options and prices before I lock in a few months.

Will the extra 5k they get from each remaining 08' make up for the 10 canceled orders, and overall bad will this creates? I doubt it. They knew 2 months ago (when the bailout was passed) that most 2008s would be produced in 2009 and get better tax incentives, and yet they waited until now to spring it on people that they have to pay more...

WarpedOne · 01-16-2009, 08:42 AM

Quote:

ETA: fair enough that they have to increase their prices, but not to locked-in customers!

I kinda agree.
But after all those new incentives from government you can still be 1000 USD "in profit" though.

graham · 01-16-2009, 09:10 AM

Quote:

Originally Posted by WarpedOne

But after all those new incentives from government you can still be 1000 USD "in profit" though.

This is not the case in my situation. Plus since this adds several thousand dollars pre-sales tax, it adds even more once that is added in. Not to mention that it is still unclear if the $7500 tax break is exempt from AMT. If it is not, none of the Tesla buyers are eligible for it anyway.

Part of "the deal" for allowing Tesla to hold tens of thousand of dollars for 2 years waiting for their product was getting to lock in your price early. Early people got a lower price in exchange for helping finance the company to get off the ground. Coming up with a way to essentially raise the price at the last minute is reneging on that deal.