Tesla Raising Prices on Electric Model S Sedan
Today's press release from Tesla Motors Inc. (NASDAQ: TSLA) indicates that the company is setting its new price targets for the Tesla Model S sedan. It is actually a price hike on the car. The company said that it originally unveiled the Model S in March 2009 with a base price of $57,400, or $49,900 after federal tax credits. Tesla said that the base price has been flat at $57,400 as the same price set over three years ago.
Tesla has noted that most automotive companies have had at least three price increases and general inflation has gone up 8.75% since initial pricing was set. It said, "A straight 8.75 percent CPI increase would now yield a base price for Model S of $62,400, an increase of $5,000." You can guess what is coming if you know sales price hikes and gimmicks from car companies and retailers. Tesla is increasing its price by half the CPI amount, giving its Model S a new base price of $59,900 before federal income tax credits.
The price hike also applies for those cars ordered on and after January 1, 2013, and those deliveries will begin several months later. In short, if you want a Tesla Model S you better get the order in by December 31, 2012. The price is going up in Canada as well. The hike there will be by $2,600 Canadian dollars, with implementation the same as in the United States.
Tesla shares closed at $33.23 on Wednesday. The consensus price target from Thomson Reuters is $36.91 and the 52-week range is $22.64 to $39.95.
JON C. OGG
Filed under: 24/7 Wall St. Wire, Alternative Energy, Autos Tagged: TSLA