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Model S Price Decrease

Just wondering if anyone thinks it would be probable that they decrease the Price of the Model S at the end of 2013. Based on new battery packs and such. Or do you think that they will introduce larger base battery packs? I found it odd that they increased the price. This also relates on when you think Model S 2.0 plans will be revealed. As Elon said, "We will introduce new exciting variants of the Model S next year."
Thoughts on this anyone?

It seems highly unlikely that they will reduce the price in the near term. I would expect that the Model S won't get cheaper, just like the Roadster didn't while it was being produced, until it is discontinued. You may get other models that are cheaper, particularly the GenIII, but it will be a different car.

The price will never come down. That is not typical car manufacture behavior. Usually more options are added as standard and the price goes up. With any luck the battery prices will drop and Tesla can add more standard options for the same price.

Don't see prices going down on the base model. If the small pack meets your needs, it is a very good value in the marketplace. Look at the comps. Larger packs may increase in capacity or reduce in cost adder. Like others noted they will probably add features but, if anything, the base cost will go up.

I also agree that Tesla is much more likely to add features than drop prices as battery prices go down.

Would you consider a better car for the same price a price decrease? Then there is some possibility.

Don't forget that prices are not set in a vacuum. If overall inflation is going up, then it would be hard for Tesla not to raise prices.

Ideally, we could get Moore's Law to apply to cars. But they'd get microscopic in a hurry! );(

He's probably talking about performance plus upgrades that he has on his car.
Definitely getting that once it's available.

Probably the price will not come down. However, like any other product, there is a balance between selling price and inventory. If they develop an inventory, their need for cash flow will make them dicker on the price a little. But don't expect that to happen this year. There is still a lot of pentup demand. I would watch for the first TV commercials and then start asking.

"Variants" like the cabriolet and van were predicted in 2010.

It'll depend a lot on whether Tesla gets any competition. If no one challenges their performance/price point, Tesla will be laughing all the way to the bank. I haven't heard any rumors of a direct competitor entering the market?

Like Brian said...the small version is likely next. I saw the prototype somewhere on line with Blankenship.

I'd look at the historical strategy behind pricing and product cycles for Apple and I believe you'll see the way they price going forward.

Hero product pricing stays pretty level, performance, features are upgraded substantially. (I'll bet we have a 450-500 mile car available at the $100K level in 2014.

Newer products are introduced at lower price levels, but will always be a tier or two below the top end product.

What surprises me is that they offer a 40KWH option on the Model S - too low a capacity for too nice a car. I believe on my 85KW with the 300-mile range is more realistically (for me and the way I drive) a 200 mile vehicle. I had originally ordered the 40KWH, but I wouldn't be surprised if many people only get 100 on that version.

I think there is a hell of a market for a 100 - 125 mile car - but not at this finish level and price point.

No, what I think EM meant by "exciting new variants of the S this year" is different bodies on the S skateboard. The new small skateboard not announced till late 2014 at the earlies, delivered around end 2015 at the earliest. That must be preceded by a whole lotta shakin' at the factory.


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