If you've been saving up pennies to buy a Tesla Model S, you're going to need a bigger piggybank. The California automaker has just announced the price will be going up by $2,500 for US customers ($2,600 in Canada). That comes out to $59,900 for the base version with the 40 kWh battery and $94,400 for the top end Model S Performance with the 85 kWh pack.

Of course, that's before taking the $7,500 federal EV tax credit into account, so in the end those two examples would cost you $52,400 and $86,900, respectively. We had feared the increase might be higher when we first heard it was coming and possibly impact sales, but we don't think the additional dollars will deter many prospective buyers. Especially not since receiving its recent accolades.

Still, if you want to avoid paying the extra amount there's still time to get in on the original deal as the increase only impacts reservations taken after January 1, 2013. Deliveries are said to take place several months after reserving, though with approximately 16,455 already ordered (according to the Tesla-obsessed at Tesla Motors Club) and only about 1,000 of those delivered, it might be August before new customers see this ground-breaking all-electric hatch in their driveway. Scroll below for the official press release.

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PRESS RELEASE

Tesla Motors Sets New Pricing for Award-Winning Model S

New Pricing Reflects First Increase in Four Years at Only Half the Rate of Inflation

PALO ALTO, CA -- (Marketwire) -- 11/29/12 -- Tesla Motors (NASDAQ: TSLA) originally unveiled the Model S in March 2009 with a base price of $57,400 ($49,900 after federal tax credits). Today, Model S is the most award-winning car of the year and the base price remains at $57,400, the same price set over three and a half years ago. During this same period of time most automotive companies have had at least three price increases and general inflation (CPI) has gone up 8.75 percent. A straight 8.75 percent CPI increase would now yield a base price for Model S of $62,400, an increase of $5,000. Tesla is increasing prices only half that amount, giving Model S a new base price of $59,900 before federal tax credits.

The price increase announced today will be for new reservations starting January 1, 2013. These new reservations will begin deliveries several months later, which means the new prices will actually go into effect over four years after Tesla originally set base pricing for Model S.

"We believe it is a positive reflection on our design process and disciplined, long-term planning that enabled us to increase prices for the first time in four years at only half the rate of inflation," said George Blankenship, vice president of worldwide sales and ownership experience. "As a company we will always strive to deliver our customers the most innovative cars in the world while minimizing price increases as we have done today."

This price increase will not apply to anyone who has or makes a reservation by end of day on December 31, 2012... as long as they finalize their order within a reasonable, predefined timeframe after being invited to configure their Model S.

In Canada, the base price of Model S will increase $2,600CAD and implementation will be the same as in the U.S.

About Model S
Model S is the world's first premium sedan built from the ground up as an electric vehicle and has been engineered to elevate the public's expectations of what a premium sedan can be. At the heart of Model S is the proven Tesla powertrain, delivering both unprecedented range and a thrilling drive experience. With a rigid body structure, nearly 50/50 weight distribution and a remarkably low center of gravity, Model S offers the responsiveness and agility expected from the world's best sports cars while providing the ride quality of a luxury performance sedan. Model S has received many awards and accolades during its first year on the market, including Motor Trend's prestigious 2013 Car of the Year.

Setting the bar for electric driving range, Model S offers 40 kWh, 60 kWh and 85 kWh battery options. All deliver unprecedented range, with the 85 kWh variant achieving an EPA-certified range of 265 miles. All three batteries use automotive-grade lithium-ion cells arranged for optimal energy density, thermal management, and safety.

Without an internal combustion engine or transmission tunnel, the interior of Model S has more cargo space than any other sedan in its class and includes a second trunk under the hood. The Model S interior features a 17" in-dash touchscreen with Internet capabilities, allowing for streaming radio, web browsing and navigation.

About Tesla
Tesla's goal is to accelerate the world's transition to electric mobility. Palo Alto, California-based Tesla designs and manufactures EVs and EV power train components for partners such as Toyota and Daimler. Tesla has delivered more than 2,400 Roadsters to customers worldwide. Model S, the first premium sedan to be built from the ground up as an electric vehicle, began deliveries in June 2012.


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  • 62 Comments
      OptimusPrimeRib
      • 16 Hours Ago
      As much as I'm not a fan of electric vehicles being that battery technology needs some improving, I would love to have this a secondary vehicle. Look cool and I love the tech even though that screen is distracting and the performance is pretty damn good. Hopefully this will lead the way to more EV's so gas prices can drop significantly and I can buy my gas guzzling muscle car and not worry about the cost of the gallons per mile I'm gonna burn.
        Grendal
        • 16 Hours Ago
        @OptimusPrimeRib
        "Hopefully this will lead the way to more EV's so gas prices can drop significantly." Sorry. Gas prices are only going to keep going up. A couple lows here and there but it's going to take a long time before the ICE is the secondary car in a household. Battery tech will keep improving and at sometime in future the EV will be the more cost effective choice. Tesla has proven that an EV doesn't need to be a compromise vehicle. It already is the cost effective choice if you are going to buy an upper end luxury car.
        ChaosphereIX
        • 16 Hours Ago
        @OptimusPrimeRib
        my sentiments exactly. I drive my Volt during the week, and weekends are (soon to be) filled with carving corners in my Maserati Gransport.
          Ziv
          • 16 Hours Ago
          @ChaosphereIX
          I can hear you chaos. I want to sell my Toyota as soon as my condo frees up a parking spot with a plug so I can lease a Volt, but I am still going to either keep my 350Z or buy an older CTS-V.
      sixpackdan
      • 16 Hours Ago
      WHY does autoblog perpetuate this complete line of B/S. "two examples would cost you $52,400 and $86,900" REALLY??? PLEASE hook me up with the tax man that can pull that load of &^%$ out of his @$$. I really gota ask who's funding your salary because there's very much an agenda going here. OR do you actually believe that insane talking point????
      Grendal
      • 16 Hours Ago
      And for those nay-sayers, Tesla just went into full production. Only people who have ordered the 85 kWh version will be getting their car this year, however. The EPA have not completed testing of the 60 kWh and 40 kWh pack versions. Subsequently the stock price has jumped. Part of that is because the shorts are bailing out. Rotation has pointed out that part of the reason for the price hike is to "finalize" your deal. That means that Tesla can count your sale as income and this will increase their bottom line for 2012. $2500 is the exact amount I predicted the increase would be. All of this looks good for those of us that want a Gen III.
        ferps
        • 16 Hours Ago
        @Grendal
        I wonder how much Mitt lost on his short.
          GoodCheer
          • 16 Hours Ago
          @ferps
          "and now they are shunning him" I don't know, I'd say they never really loved him, he was just the last one standing after everyone else in the primary floated, one by one, to the top of the pile and then exploded.
          Grendal
          • 16 Hours Ago
          @ferps
          Poor Mitt worked his butt off for his party and now they are shunning him for not winning. It's like a dysfunctional family: "I never liked you anyway!" I'm glad Tesla and Fisker is proving him wrong - so far.
        Rotation
        • 16 Hours Ago
        @Grendal
        Good call on the prediction. Yeah, when you configure, your deposit becomes non-refundable and thus becomes income/working capital for them. Tesla also solidified their "reasonable time" you are allowed to dally between being asked to configure and finalizing the order, that period is 3 weeks (from the email being sent). If you go beyond this, you will be subject to the price hike even if you ordered before the end of this year. It is unclear what happens to people who were asked to finalize this year and the 3 weeks is up before the end of this year. Tesla says you get the hike, but that seems nonsensical to me. Also note Tesla is very aggressive with finalizing orders now, people in the middle to high thousand order numbers have already been asked to finalize (weeks ago), even though they won't get their cars for 3-5 months (more if they asked for no air suspension or other not yet deliverable configs). Given the higher rate of production, asking higher numbers to finalize makes sense, although it seems Tesla is moving a little quicker than even the increase rate. This still seems reasonable to me, or at the very least no less unreasonable than taking $5K deposits 3 years in advance ever was. Why do you think the 40/60 thing is an EPA issue? It's a zero emissions car. I would rather suspect Tesla is just pushing back the cheaper configs in order to deliver more expensive configs sooner and thus get more revenue. Slightly off-topic note: Any word on the charge timer update or twincharger release? Oh, another off-topic note. I drove one (and also rode in the back) without the sunroof, the headroom for people like me is unchanged. I was sitting in back with my head touching the ceiling just like the sunroof model. However, this is only for people like me to put their heads back (I regularly drive with my head up against the headrest in cars I own), the person next to me was 3 inches taller than me and had no problem in the back of a model either with or without sunroof.
          Grendal
          • 16 Hours Ago
          @Rotation
          We might disagree on points at times but it is always a pleasure commenting with you. Someone on TMC just posted that his car will be done before the end of the year #4996. The key is you need to have the right configuration and it seems you will get your car ASAP. This will undoubtedly tick off a few but since production has blossomed to full speed then timing is a lot more sure than it was a week ago. The 40/60 thing has been mentioned by Delivery Specialists to waiting customers. I believe it is the final testing for range and MPGe. I think you are right that it also has to do with $$ and if Tesla can push it into next year they can flash a big number for the final quarter of 2012. My feeling is that they are also pushing hard to exceed the 2500 delivered by the end of the year too. There are a few Signatures that haven't been delivered due to production problems and not passing final QC. Hopefully Tesla steps up and gives them something to compensate for their delay. One of the people was asking for suggestions for compensation. There are still holdups for certain outsourced items like the HPWC and the jump seats (confirmed that there were quality and safety issues with their initial shipment of jump seats). Tesla is scrambling to get those corrected. Customers are asked if they would like to wait or take delivery with a "still needed" list of items. Overall it's a situation that a customer could easily get very frustrated with but most seem willing to work with. Just like the headroom issue. It's a problem for certain people. Most are willing to live with it and a few bought the sunroof model just to get the extra headroom. I think the final hurdle for Tesla was reaching full production. That has apparently happened. Everything else can be worked out given time. The only exception I can foresee is some fundamental flaw that hasn't been seen yet that is dangerous. That is very unlikely, but possible. Reservations are at 14,900 and might hit 15K by tomorrow. I'm very excited that this is a good indication that I will be able to buy a Gen III like I was hoping.
      mycommentemail
      • 16 Hours Ago
      Oh mikey, It works very much like a rebate. If I buy a washer that has a manufacturer's rebate, I pay the full price up front, then send in my proof of purchase. Some months later, I get a check for X amount of dollars. Here, I buy a car with a tax credit. I pay the full price up front, then send in my proof of purchase via my tax forms. Some months later, I get a refund check from the IRS that is $7500 greater than it would have been otherwise. Boom. Done. Any questions?
      justgoawaymad
      • 16 Hours Ago
      Im the troll for telling the truth? You REALLY dont understand the tax code do you? A tax credit is NOT a rebate...period.
      douglasquaid
      • 16 Hours Ago
      Great looking car. Haven't seen one in person yet but will keep an eye out for it. The amount of money being put into research for battery tech and the focus on weight reduction lately will only improve the range for these. I would like to see what a car company could come up with if they threw in a small natural gas engine to charge the batteries for those needing even further range.
        skierpage
        • 16 Hours Ago
        @douglasquaid
        Car companies would "come up with" an even heavier car lugging around a second power source that does nothing for performance. And you'd be paying a lot more, the 2013 Civic NG costs ~$7500 more than the regular Civic sedan. There are several plug-in hybrids for sale with 13-35 miles of all-electric range, all with ICE engines. The market of drivers who want short electric driving *and* efficient/cheap natural-gas long-distance travel is tiny, and will remain so until gasoline becomes vastly more expensive. Companies have proposed all kinds of exotic and novel range-extending engines. To date none has met the demands of cost, size, mpg and power (enough to move a car with heavy batteries uphill in the mountains) better than an Atkinson-cycle gasoline engine.
        axiomatik
        • 16 Hours Ago
        @douglasquaid
        I was surprised to see one a few weeks ago while standing outside LAX waiting for a shuttle. With so few on the road so far, I really didn't expect to see one yet.
        Grendal
        • 16 Hours Ago
        @douglasquaid
        I live in a small town and someone here just had theirs delivered recently. He already offered to give me a ride in it. What a nice guy. I can't wait to see it in person.
      justgoawaymad
      • 16 Hours Ago
      WHY does autoblog perpetuate this complete line of B/S. "two examples would cost you $52,400 and $86,900" REALLY??? PLEASE hook me up with the tax man that can pull that load of &^%$ out of his @$$. I really gota ask who's funding your salary because there's very much an agenda going here. OR do you actually believe that insane talking point????
        purrpullberra
        • 16 Hours Ago
        @justgoawaymad
        Justgoawaymal-educatedandworthless. PLEASE !!!!!!!!!!
          justgoawaymad
          • 16 Hours Ago
          @purrpullberra
          Feel free to go buy the car. Take you paperwork to the tax man and bring a box of kleenex so you can cry him a river when you find out its not a rebate.
        graphikzking
        • 16 Hours Ago
        @justgoawaymad
        I got all my monies back. When the Prius had a $3,150 Federal Tax Credit and $500 state rebate. When I got my taxes done, I took in my Auto purchase contract, the girl selected Hybrid Vehicle, Prius and got me $3150 more back in my taxes. The state rebate was just fax in my car papers with a copy of my registration and Pennsylvania Treasury sent me $500. When I bought my Hybrid Water heater, on my taxes the lady selected Heat Pump Water heater and I got $450 more back in my taxes as well. When you fill out your taxes - you would get that $7500 extra back UNLESS you didn't pay Federal Income taxes. They won't give you MORE than you paid in. But they allow you to carry it forward for a number of years to get a little each year. Yes - you have to pay the full $59,900 up front, and then when your next tax time - you get the extra back. Why is it so hard for you to understand?
        mikeybyte1
        • 16 Hours Ago
        @justgoawaymad
        It's not just AB. Every report I read that talks about a hybrid, BEV, PHEV, etc., always takes the price and subtracts the fed and/or state tax credits like they are a rebate. They are not rebates. You can't walk in and get a rebate check for $7500. I honestly think many car journalists do not understand how the tax credit works.
          Dave R
          • 16 Hours Ago
          @mikeybyte1
          If you are smart and plan your purchase for the end of the year, you can get your plug-in vehicle tax credit money well in advance of when you actually pay for the car by reducing your federal tax withholdings from your paycheck. Or if you are dumb and buy your plug-in vehicle at the beginning of the year and don't adjust your federal tax withholdings, you loan the federal govt the money until you file your taxes and get your rebate check in hand.
          justgoawaymad
          • 16 Hours Ago
          @mikeybyte1
          mikeybyte1 i think your the only one that gets the point here. That or none of these clowns has a clue how the tax code works. People, a tax credit simply put for the ones that dont understand. A tax credit lowers your income by that much, period. If your lucky you will drop down into the next bracket. Thats why a tax credit is a scam for the lower mentalities out there. They THINK it works like a rebate. WRONG ANSWER.
        mycommentemail
        • 16 Hours Ago
        @justgoawaymad
        hey mad, http://wiki.answers.com/Q/What_does_gross_price_and_net_price_mean There. I explained the "insanity" for you. I, unfortunately, cannot help you with your desire to have sex with a tax man because I don't know where you live.
          Marcopolo
          • 16 Hours Ago
          @mycommentemail
          @ mycommentemail "unfortunately, cannot help you with your desire to have sex with a tax man because I don't know where you live." Lol ! ....oh, but hang on, the taxman knows where 'mad' lives.........
          justgoawaymad
          • 16 Hours Ago
          @mycommentemail
          Are you drunk or hi? gross price and net has nothing to do with this conversation. It has to do with no one here understands how the tax code works and are completely fooling themselves on the amount of money its worth. The gov uses the tax credit scam because it works. Just look at all the clowns here that have down graded me. They DONT understand its in now way the same as a rebate. And thats why the gov does not like using rebates. It costs them real money.
        AnthonyL
        • 16 Hours Ago
        @justgoawaymad
        You're an idiot, that is exactly the price you would pay for the vehicles. Go back to your cave, troll.
      Letstakeawalk
      • 16 Hours Ago
      It also helps to pay for the Supercharger infrastructure Tesla is building for its customers.
      mikeybyte1
      • 16 Hours Ago
      No it's not. Go read on how a fed tax credit works. You don't walk in and see $59,900 and they mark it down to $52,400. You pay $59,900. By all means, go to any dealer and ask them to reduce it by the fed tax credit.
      mycommentemail
      • 16 Hours Ago
      ...and that was meant for little mikey's post below. Stupid commenting system that won't let me edit.
      purrpullberra
      • 16 Hours Ago
      Good call Grendal. Rotation: I still insist the price hike was done for a price hike and not to secure a better set of financial numbers. An increase was always coming. You accept the sense in all the other moves so I guess you now see it as less, well, sleazy. That was what I disagreed with. Its fantastic news for almost everyone (who matters, cough, Zeus). A small number of diehards are probably getting screwed, at the moment, but they will be paid back. They've waited this long and virtually nothing means more than getting the car you've put SO much in to. Pain. Hope. Fear. Desperation. Its not much longer now. Where oh where is my OKTrader today? Looking in the couch cushions for change to meet his call. Hahahahahahaha (Yes, I'd do that while enjoying dinner at his(?) house were we friends. Giving sh#+ is not only online.) Gen III: That's what they'll do next quarter, start taking $5 k deposits that some won't get for years. That would be a bit sleazy, take deposits for gen III while some who've waited for 2 years haven't got theirs. That's what makes me think that Tesla will do right by those wronged right after they catch a freaking breath. Its been way too hard a row to hoe to do everything just right but they have performed a modern industrial miracle!
        Rotation
        • 16 Hours Ago
        @purrpullberra
        Their explanation is sleazy. The hike is what it is. They talk about inflation, they surely predicted inflation when they set the price in advance and they stuck with the prices for the first model year too, indicating they didn't completely mess up their figures. So just say "we're raising prices" like everyone else. Don't try to spin me a yarn that puts it on someone else. If I don't feel that Tesla is above pulling a "I have altered the deal, pray I don't alter it again" on their customers, it's because of what they did with the Roadster. I hope they won't ever do that again, but I'm not going to pretend it didn't happen and that they are above it.
          purrpullberra
          • 16 Hours Ago
          @Rotation
          That all sounds reasonable. Desperation drives people to do things they wouldn't normally do. That's how I'd put it. Those who believed and jumped in early, who were screwed so to speak should be shown how much Tesla appreciates their role in making Tesla happen, probably with some type of 'reward'. The blog of George's that explains this stuff is unquestionably unusual for the car industry guy's not something I'd ever call sleazy. It seems to be 'the Tesla way' of doing things: talk it out with your die hard customers online after hearing there is an explanation required. Not all questions are answered as early as some would like but they are doing better than most companies today. It ain't perfect, these 'explanations', but no car company does it better than Tesla does. And they always acknowledge that they need to keep getting better. I don't know how you can ask for more. If the folks who were 'screwed with' for money or patience early on can understand why Tesla did that and forgive and move on why do you still seem so hurt/offended by those very difficult times?
      raktmn
      • 16 Hours Ago
      This is just a 2.6% increase in price for the top model since Tesla first announced the price more than 3 years ago in 2009. That's less than 1 percent a year. That seems very reasonable and probably comparable to gas cars.
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