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Tesla Model S Price Rise On The Horizon

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2013 Tesla Model S

2013 Tesla Model S

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The Tesla Model S electric luxury sedan has been a runaway success, with the car praised by most that have driven it and order books already registering more than 13,000 sales. To take advantage of the strong demand, Tesla is in prime position to charge a little more for the Model S and that is exactly what it looks to be doing.

Tesla confirmed on Tuesday it would be raising prices on the Model S in the near future. The company said it will be making an announcement on the new pricing within the next two or three weeks.

Tesla is keen to point out that the price increase will not affect anyone with an existing reservation prior to the effective date of the price increase.

In addition to the price increase, Tesla will also be realigning its options packages, meaning some things that are currently considered standard equipment may become part of an optional package going forward. Once again, these changes won’t affect anyone who reserves a Model S before the as yet unannounced cutoff date.

As Green Car Reports points out, the price increase serves two purposes: It lets Tesla lock down more sales and understand how those cars will be configured before they're built, and it boosts the incremental profit per vehicle of future sales.

Currently, pricing on the Model S starts at $49,900 (after a $7,500 tax credit) for models with the 40 kWh battery and 160 mile range, and goes up to almost $85k (after the tax credit) for the Model S Performance, which has an 85 kWh battery and driving range of almost 300 miles.

We’ll bring you an update as soon as Tesla reveals its new pricing strategy for the Model S.
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