Tesla has increased the price of the base Model S by another $5,000 – making it a $10,000 base price increase in less than a month.
Since the beginning of the year, we have been covering a seemingly continuous series of price increases throughout Tesla’s vehicle lineup.
However, it has particularly affected Model 3 and Model Y vehicles since Tesla hasn’t been delivering Model S and Model X as the updated versions of the new electric vehicles were delayed.
In June, Tesla finally started deliveries of the new Model S – starting with the new Plaid top performance version, which also saw a $10,000 price increase last month.
A few weeks later, as Tesla started delivering the new base version of the Model S, Model S Long Range, Tesla increased the price of the vehicle by $5,000.
Today, Tesla updated its online configurator and again increased the price by $5,000:
The price went up from $84,990 to $89,990 overnight, and it now adds up to a $10,000 increase over the last month.
That’s despite Tesla delivering a limited amount of the base version of the new Model S as it focuses on deliveries of the Plaid version, which still starts at $129,990.
The automaker also recently updated the Model S delivery timelines for new orders and currently lists March-April for new orders for the Model S Long Range in the US.
That’s despite Tesla recently claiming that it could ramp up Model S/X production back up to ~2,000 units per week by the end of the year.
Tesla has recently blamed price increases on supply chain issues putting pressure on costs.
However, the automaker also saw its automotive gross margin improve last quarter after some price increases.
Especially when it comes to Model S, I think it’s more likely that Tesla is being opportunistic here and taking advantage of strong demand.
With the launch of the new version of the electric sedan, the price of the base Model S went up by almost 30% from $69,420 to $89,990.
At the same time, we have been hearing issues delivering orders placed before the $10,000 price increase.
Therefore, it could be a mix of both supply chain issues and Tesla being able to jack up the price without affecting demand too much.
What do you think? Let us know in the comments section below.
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