Tesla Model S 60 Base Price About To Increase $2,000

Tesla’s Model S 60 base price increase of $2,000 is nearly here, meaning that those interested in getting one before the hike should get moving. The new, higher base price apparently goes into effect on November 22.

The move is an interesting one. I had heard some speculation that since Tesla was going to begin charging for Supercharger use — beyond a yearly stipend of 400 kilowatt-hours (kWh), which will meet most users’ long-distance travel needs — Tesla would likely be lowering the price. 🙂

Well, that certainly didn’t happen.

It seems likely, though, that the price increase is related to the new Autopilot hardware that has full self-driving capability. Even if a buyer doesn’t choose Autopilot, that hardware is in the car.

Something to keep in mind, even if it’s only speculation: With the Tesla Model 3 slated to begin hitting the market next year, it probably makes sense to further differentiate the Model S with regard to price. A fully loaded Model 3, after all, probably shouldn’t overlap too much (or at all?) with the Model S as far as prices go.

Also, with the Model 3 available as a purchase option, many of those who had been purchasing Model S sedans simply because the company didn’t offer anything cheaper will have a more affordable option. (I’ve heard from a number of people that the Model S is by far the most expensive car that they’ve ever purchased.)

This matters if you take CEO Elon Musk at his word that his primary motivation is a shift away from internal combustion engine (ICE) vehicles and an associated drop in greenhouse gas emissions, even if that means less profit.

If you look at Tesla’s competition and how the Model S is selling, I think you can say it’s underpriced a bit — but that has served a purpose since rapid market growth and cultural adoption of EVs has been the goal, as Musk has publicly stated.

With the Model 3 now nearly here, though, keeping the base Model S price down isn’t so important, since you can get a compelling long-range EV starting at $35,000 (not including incentives).

Much of this is speculation, though. We don’t know the precise reasoning behind the $2,000 price increase.