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Price increase going from 19" rims to 21"

Just checked the design studio. The Price of going from the 19" rims to 21" rims went up from $3500.00 to $4500.00. Since I won't have a MS until July 2014 I'm hoping the prices don't rise. Bummer for me.

A grand here, a grand there...pretty soon, you're talking real money.

$4500?? What the hell are they smoking at Tesla?

I mean seriously? First off its not even $4500, but its $4500 plus the cost of the 19inch tires. So its approx $6000 for 4 sets of wheels/tires which aren't all that awesome to begin with (the + version gets the more awesome tires).

I'm pretty sure I can buy some pretty damn impressive wheel/tire combo's for $1500 a piece.

At the very least they simplified things. Bye, bye 21', and hello 19's for the Winter and 21's for the summer.

I gotta save the configuration/options I want to a PDF because Tesla keep changes things so its hard to keep track of the pricing.

Would it be crazy to order separately? http://shop.teslamotors.com/collections/model-s/products/21-silver-high-...

Maybe, I'll just get the gray ones, instead.

gibbs - That's a great idea, and in fact might just do that. That way I get the tires I want for summer (the grey 21's), and I also get the 19inch tires that make more sense (in my use case) for winter.

Actually disregard that. It's still a bit pricey.

I have feeling Tesla is playing games with the pricing due to the popularity of it in the US.

For example the pricing for the 21" rims is still $3500 in Europe.

http://www.teslamotors.com/en_EU/models/options

For example the pricing for the 21" rims is still $3500 in Europe.
Still expensive... that's about $4550 with exchange rate applied.

Since you can't save a configuration for the past few months I price one out daily. The price change was today I believe for the 21" setup. I've been bouncing between 21" or 19". When I order this might make me lock in the 19"s and not worry about 21" wear. I've been struggling with how hot the 21s are but how practice the 19" are. I got a long wait till I can pick one up next July, hope not much price increase between now and then.

@tobi_get - I should have specified that I already made the conversion to USD using the multiplier that Tesla used for the other options. There conversion factor seemed to be fairly consistent among the options.

For example the Glass Panoramic roof is 1325 euros, but that option is 1500 in the US. Sure there total cost comes out to be around 15% more than the US, but that's pretty common.

Using the same conversion factor the 21inch rims/tires go from 3075 euros to $3500 which would be the old amount they wanted for the wheels/tires in the US. At 3075 euros using the current exchange rate puts it at $4000 USD so it makes it the only option where the European pricing is the same as the US in actual USD amounts.

Are they going to raise the price of all the other options in the US to match what Europeans pay?

The other element that doesn't make sense is a set of 4 21" wheels/tires on the Tesla Shop are $5200 installed. But, if you buy them with the car for $4500 it means that the 19inch tires/wheels are only worth $700 to Tesla.

Would you give up brand new Tesla 19inch Tires/wheels for $700 total?

Tesla wants $2400 for 19" Wheels and Winter Tires (On the Tesla gear page). I'm pretty damn sure those tires aren't worth $425EA more than the default 19" tires that come with the car.

Just checked: on German options page the 21" tyres are now priced 3.650 EUR, approx. $4.745

^ I meant "puts it at $4000 USD so it makes it the only option where the European pricing is LESS than the US in actual USD amount.

@tobi_ger - So you're saying if I click refresh the price will change from 3075 euros to 3650 euros.

No, its still showing me 3075 euros for the high performance tires on the link I gave.

The active air suspension also went up today or yesterday I think.

http://www.teslamotors.com/en_EU/models/options

Is where I was getting the pricing, and that hasn't changed.

I never checked the German page.

I've used the /de_DE/ link, so there is a different pricing, yes.

No changes on the Dutch pricelist.

Air Suspension also increased from $1,500 to $2,250…

Now we know why they put this in the latest announcement,

"Tesla will continue to provide reasonable notice for changes to the base price of Model S or to a large group of options, balanced by the desire to keep unnecessary emails to a minimum."

Tesla may be making a mistake by raising prices without announcement - it's what everyone else does. They have a history, I believe, of driving demand when they announce a price increase but then give a grace period to buy in at the existing price. Re: Model S at the end of 2012 and ESA now. If they are raising prices a half dozen times per year on stuff (guess), why not do a one-week pre-announce for the increase? They'd have a big PR win. Gets to the end game - sell more cars!

www.teslamodels.wordpress.com

This also counters those who are saying, due to falling cost of technology over time, that the Model S will get less expensive as time goes on. Tesla is proving that actually the opposite is the case. So there is no longer any reason to sit on the fence unless there is something specific you are waiting for that the current model doesn't offer.

None of us have true insight of costs. Being someone that is a year off till I have a MS I had hoped that the prices would not rise (much).
If I have the numbers correct Elon has said they are making 17 percent profit today and by end of year they will be making 25 percent profit. Tesla has to stay profitable over the next few years on the MS and the X car until the mainstream Gen III comes out and a larger percent of the population can buy a car. I certainly don't like the slipping in the changes in cost to us unannounced.
Keeping fingers crossed that prices don't rise much more before I buy one.

Based on the success of the MS, I wouldn't be surprised if TESLA doesn't raise the price of it an additional 20% more. Yes, it's THAT much better than cars that are FIVE-times more expensive, and until other car makers can catch up to what Tesla is doing, the MS is in a class all by itself.

Like their stock... you snooze, you lose.

Tiki;
+1

You should know by now why economists like a slight inflation and think deflation is one of the worst thing that could happen to an economy (Japan's for example). Consumers won't purchase anything if they think they could get a better price by waiting.

All companies know this and Tesla should not be an exception.

I personally have not seen mid-model year price increases on any of my previous ICE vehicles without concomitant additions of significant features/functionality. YMMV.

While I fully expected TM to raise prices in the new model year, e.g. effective Jan 2014, I also expected TM would announce the increases in December, as they did in 2012. 2013 3rd & 4th quarter buyers who pay considerably (29-60%) more for certain options than 1st & 2nd quarter buyers may have a difficult time recouping any of those increases if/when they choose to sell or trade.

How will a third party like KBB or Edmunds evaluate option pricing in 4 or 5 years when the cars are the same model year? Software updates apply to everyone, so no distinction. New features? Assign a reasonable value. Same feature, different prices in same model year? Not easy. Latest buyers will probably be SOL.

Will these price increases slow 3rd & 4th quarter sales? IDK. If TM better communicated the REASONS for the increases, they might be more palatable. I personally plan to wait until December to take advantage of the new "sensor" options no doubt coming after European deliveries start having them. If the 2014 price increase is really significant, as Tikiman suggests it might reasonably be, I'll lock in the price before years' end. FWIW, I need to take delivery in 2014 for financial reasons. Again, YMMV ! Whatever floats your boat... :)

Looks like the prices for the 21" wheels and air went back to the original price.

@ kawalia - After your comment, I checked and could not see where your info is coming from. Both still show up with the increased prices when I checked Options & Pricing.

I just went through the design page 5 min ago, the 21" shows $3,500 and Air $1,500 for me.

I did reserve our car prior to the price increase, maybe I'm "grandfathered in".

Wow. Thanks for the quick reply. I wonder which hasn't been updated.


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