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Tesla pulls all the ‘demand levers’ before year end, confirms $2,000 base price increase


As we reported earlier this month, we expected a $2,000 price increase for the entry Model S 60 on November 22nd. In an email last night, Tesla confirmed that the price increase is coming and in the process, it pulled all the ‘demand levers’ to finish the fourth quarter and the year 2016 with strong sales.

A reliable source told us that November 22 coincides with the last day to order a non-inventory Model S and get a delivery before the end of the year.

It looks like Tesla is lining up all the incentives to order in the next 2 weeks and finish the year strong. The company needs to deliver roughly 25,000 vehicles to reach its delivery goal.

In the same email, Tesla included a reminder of the change in the Supercharger program that will take place for cars ordered after January 1, 2017. As we reported earlier this week when Tesla announced the change, it will not have a great impact for most people, but if you expect to be a big Supercharger user, it would make sense to order your car now and get under the “unlimited long distance” supercharger program.

So you have an upcoming base price increase, a change to the Supercharger program that could be seen as disadvantageous by some, and you can add the EV incentives that are applied at the end of the year in certain markets, like the US federal tax credit. It looks like Tesla is creating the perfect storm of advantages to order within the next 2 weeks.

You can add to that the $1,000 discount with referral program – though Tesla has been quickly renewing the program after the last few rounds – and it looks like the Model S won’t be cheaper than it is now, or at least for a while.

Finally, Tesla also mentions the new ‘Full Self-Driving Hardware’ included in all cars, which is an important “future-proofing” factor that also acts as a “demand lever”.

Here’s Tesla’s email in full:

An Update to our Supercharger Program

Four years ago, Tesla introduced the Supercharger Network – the world’s fastest charging solution – to enable convenient long distance travel. Today, more than 4,600 Superchargers allow over 160,000 Tesla owners to drive all over the world.

We recently announced a change to the economics of Supercharging – one that allows us to reinvest in the network, accelerate its growth and bring all owners, current and future, the best Supercharging experience.

Any Tesla ordered by December 31, 2016 will continue to benefit from free unlimited Supercharging. For Model S and Model X vehicles ordered after January 1, 2017, 400 kWh of free Supercharging credits (roughly 1,000 miles) will be included annually so that owners can continue to enjoy free Supercharging during travel.


All Tesla Cars Now With Full Self-Driving Hardware All Tesla vehicles produced in our factory now have full self-driving hardware, enabling a rapidly expanding set of new Autopilot features to be introduced over time. While active safety features continue to come standard in all Tesla vehicles, customers can now choose from two new Autopilot packages: Enhanced Autopilot, which is an advanced suite of driver-assistance features, and Full Self-Driving Capability which will ultimately take you from home to work and find a parking space for you on its own.

Self-driving vehicles will play a crucial role in improving transportation safety and accelerating the world’s transition to a sustainable future. Once the software is extensively validated and there is regulatory approval, full autonomy will enable a Tesla to be substantially safer than a human driver. It will also lower the financial cost of transportation for those who own a car, while providing low-cost on-demand mobility for those who do not.

Price Increase for Model S 60

On November 22, 2016 the base price of Model S 60 will be increasing by $2,000. Now is the time to get behind the wheel of a Tesla for as low as $737/month (details here). The Model S 60 can drive up to 218 miles on a single charge and accelerates from zero to 60 mph in just 5.5 seconds.

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