Tesla Model S Gets $2,500 Price Increase Starting Jan. 1st

Can’t say you weren’t warned. In order to keep up with inflation and increase cash flow to the fledging company, Tesla Motors has announced an across-the-board price hike of $2,500 on all of its Tesla Model S electric sedans.

That means the cheapest model will now cost $59,900 before tax credits, while the top-end Model S Performance will set you back $94,400. According to Elon Musk, this price increase is just half what it should be to make up for inflation since Tesla first pledged to sell the Model S for under $50,000 back in 2009.

Yet credit is due to Tesla, which kept that pledge, albeit with the caveat that the $7,500 tax credit had to be applied to bring the $57,400 price below the $50,000 threshold. Now, after the tax credit, you’ll end up paying $52,400 for the Tesla Model S after tax credits.

That said, these price increases only affect those who wait until January 1st to plunk down a $5,000 deposit. That gives anybody on the fence a full month to take the all-electric plunge and buy themselves what has been almost universally hailed as the Car of the Year.

Source: Tesla Motors

Christopher DeMorro

A writer and gearhead who loves all things automotive, from hybrids to HEMIs, can be found wrenching or writing- or else, he's running, because he's one of those crazy people who gets enjoyment from running insane distances.