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Price increase going from 19" rims to 21"

Price increase going from 19" rims to 21"

Just checked the design studio. The Price of going from the 19" rims to 21" rims went up from $3500.00 to $4500.00. Since I won't have a MS until July 2014 I'm hoping the prices don't rise. Bummer for me.

cfOH | 29 June 2013

A grand here, a grand there...pretty soon, you're talking real money.

S4WRXTTCS | 29 June 2013

$4500?? What the hell are they smoking at Tesla?

I mean seriously? First off its not even $4500, but its $4500 plus the cost of the 19inch tires. So its approx $6000 for 4 sets of wheels/tires which aren't all that awesome to begin with (the + version gets the more awesome tires).

I'm pretty sure I can buy some pretty damn impressive wheel/tire combo's for $1500 a piece.

At the very least they simplified things. Bye, bye 21', and hello 19's for the Winter and 21's for the summer.

I gotta save the configuration/options I want to a PDF because Tesla keep changes things so its hard to keep track of the pricing.

gibbs | 29 June 2013

Would it be crazy to order separately? http://shop.teslamotors.com/collections/model-s/products/21-silver-high-...

Maybe, I'll just get the gray ones, instead.

S4WRXTTCS | 29 June 2013

gibbs - That's a great idea, and in fact might just do that. That way I get the tires I want for summer (the grey 21's), and I also get the 19inch tires that make more sense (in my use case) for winter.

S4WRXTTCS | 29 June 2013

Actually disregard that. It's still a bit pricey.

S4WRXTTCS | 29 June 2013

I have feeling Tesla is playing games with the pricing due to the popularity of it in the US.

For example the pricing for the 21" rims is still $3500 in Europe.

http://www.teslamotors.com/en_EU/models/options

tobi_ger | 29 June 2013

For example the pricing for the 21" rims is still $3500 in Europe.
Still expensive... that's about $4550 with exchange rate applied.

Kimscar | 29 June 2013

Since you can't save a configuration for the past few months I price one out daily. The price change was today I believe for the 21" setup. I've been bouncing between 21" or 19". When I order this might make me lock in the 19"s and not worry about 21" wear. I've been struggling with how hot the 21s are but how practice the 19" are. I got a long wait till I can pick one up next July, hope not much price increase between now and then.

S4WRXTTCS | 29 June 2013

@tobi_get - I should have specified that I already made the conversion to USD using the multiplier that Tesla used for the other options. There conversion factor seemed to be fairly consistent among the options.

For example the Glass Panoramic roof is 1325 euros, but that option is 1500 in the US. Sure there total cost comes out to be around 15% more than the US, but that's pretty common.

Using the same conversion factor the 21inch rims/tires go from 3075 euros to $3500 which would be the old amount they wanted for the wheels/tires in the US. At 3075 euros using the current exchange rate puts it at $4000 USD so it makes it the only option where the European pricing is the same as the US in actual USD amounts.

Are they going to raise the price of all the other options in the US to match what Europeans pay?

The other element that doesn't make sense is a set of 4 21" wheels/tires on the Tesla Shop are $5200 installed. But, if you buy them with the car for $4500 it means that the 19inch tires/wheels are only worth $700 to Tesla.

Would you give up brand new Tesla 19inch Tires/wheels for $700 total?

Tesla wants $2400 for 19" Wheels and Winter Tires (On the Tesla gear page). I'm pretty damn sure those tires aren't worth $425EA more than the default 19" tires that come with the car.

tobi_ger | 29 June 2013

Just checked: on German options page the 21" tyres are now priced 3.650 EUR, approx. $4.745

S4WRXTTCS | 29 June 2013

^ I meant "puts it at $4000 USD so it makes it the only option where the European pricing is LESS than the US in actual USD amount.

S4WRXTTCS | 29 June 2013

@tobi_ger - So you're saying if I click refresh the price will change from 3075 euros to 3650 euros.

S4WRXTTCS | 29 June 2013

No, its still showing me 3075 euros for the high performance tires on the link I gave.

michael1800 | 29 June 2013

The active air suspension also went up today or yesterday I think.

S4WRXTTCS | 29 June 2013

http://www.teslamotors.com/en_EU/models/options

Is where I was getting the pricing, and that hasn't changed.

I never checked the German page.

tobi_ger | 29 June 2013

I've used the /de_DE/ link, so there is a different pricing, yes.

Fred O | 30 June 2013

No changes on the Dutch pricelist.

AmpedRealtor | 30 June 2013

Air Suspension also increased from $1,500 to $2,250…

Cattledog | 30 June 2013

Now we know why they put this in the latest announcement,

"Tesla will continue to provide reasonable notice for changes to the base price of Model S or to a large group of options, balanced by the desire to keep unnecessary emails to a minimum."

Tesla may be making a mistake by raising prices without announcement - it's what everyone else does. They have a history, I believe, of driving demand when they announce a price increase but then give a grace period to buy in at the existing price. Re: Model S at the end of 2012 and ESA now. If they are raising prices a half dozen times per year on stuff (guess), why not do a one-week pre-announce for the increase? They'd have a big PR win. Gets to the end game - sell more cars!

www.teslamodels.wordpress.com

AmpedRealtor | 30 June 2013

This also counters those who are saying, due to falling cost of technology over time, that the Model S will get less expensive as time goes on. Tesla is proving that actually the opposite is the case. So there is no longer any reason to sit on the fence unless there is something specific you are waiting for that the current model doesn't offer.

Kimscar | 30 June 2013

None of us have true insight of costs. Being someone that is a year off till I have a MS I had hoped that the prices would not rise (much).
If I have the numbers correct Elon has said they are making 17 percent profit today and by end of year they will be making 25 percent profit. Tesla has to stay profitable over the next few years on the MS and the X car until the mainstream Gen III comes out and a larger percent of the population can buy a car. I certainly don't like the slipping in the changes in cost to us unannounced.
Keeping fingers crossed that prices don't rise much more before I buy one.

TikiMan | 30 June 2013

Based on the success of the MS, I wouldn't be surprised if TESLA doesn't raise the price of it an additional 20% more. Yes, it's THAT much better than cars that are FIVE-times more expensive, and until other car makers can catch up to what Tesla is doing, the MS is in a class all by itself.

Like their stock... you snooze, you lose.

Brian H | 30 June 2013

Tiki;
+1

carlk | 30 June 2013

You should know by now why economists like a slight inflation and think deflation is one of the worst thing that could happen to an economy (Japan's for example). Consumers won't purchase anything if they think they could get a better price by waiting.

All companies know this and Tesla should not be an exception.

TI Sailor | 1 July 2013

I personally have not seen mid-model year price increases on any of my previous ICE vehicles without concomitant additions of significant features/functionality. YMMV.

While I fully expected TM to raise prices in the new model year, e.g. effective Jan 2014, I also expected TM would announce the increases in December, as they did in 2012. 2013 3rd & 4th quarter buyers who pay considerably (29-60%) more for certain options than 1st & 2nd quarter buyers may have a difficult time recouping any of those increases if/when they choose to sell or trade.

How will a third party like KBB or Edmunds evaluate option pricing in 4 or 5 years when the cars are the same model year? Software updates apply to everyone, so no distinction. New features? Assign a reasonable value. Same feature, different prices in same model year? Not easy. Latest buyers will probably be SOL.

Will these price increases slow 3rd & 4th quarter sales? IDK. If TM better communicated the REASONS for the increases, they might be more palatable. I personally plan to wait until December to take advantage of the new "sensor" options no doubt coming after European deliveries start having them. If the 2014 price increase is really significant, as Tikiman suggests it might reasonably be, I'll lock in the price before years' end. FWIW, I need to take delivery in 2014 for financial reasons. Again, YMMV ! Whatever floats your boat... :)

kawaiia | 1 July 2013

Looks like the prices for the 21" wheels and air went back to the original price.

TI Sailor | 1 July 2013

@ kawalia - After your comment, I checked and could not see where your info is coming from. Both still show up with the increased prices when I checked Options & Pricing.

kawaiia | 1 July 2013

I just went through the design page 5 min ago, the 21" shows $3,500 and Air $1,500 for me.

kawaiia | 1 July 2013

I did reserve our car prior to the price increase, maybe I'm "grandfathered in".

TI Sailor | 1 July 2013

Wow. Thanks for the quick reply. I wonder which hasn't been updated.

TI Sailor | 1 July 2013

@ kawalia - Are you on the U.S. page? The reason I ask is I just took the (U.S.) Design Studio route and both options still showed up at the higher prices.

EJH | 1 July 2013

As a two month owner of a red P85, I cannot see the merit of matching this car with anything less than the widest and stickiest rubber available. You will need it, and will always be happy that you have it.
Price increase? Well, does this not contribute to the value of the cars that are already on the road, which is a good thing for all of us?
Believe me, the price component of any of this stuff evaporates within a week or two of ownership, so "don't sweat the small stuff", and enjoy the ride!

AmpedRealtor | 1 July 2013

Anyone who reserved prior to the price increase can still view their design and see the old prices. Anyone who has not reserved, it stands to reason, will see the higher price.

Bubba2000 | 1 July 2013

it is Economics 101. Just about everybody I know who got a Model S, wants the 21" wheels, because they look great and work the best. Except me. I got a P85 but went with 19" wheels because I just do not want to replace tires in less than 12 months. Then with all the bad roads, pot holes around where I live, the tires would get curb rash that have to be fixed. I want to avoid, brake, muffler, oil change, radiator shops, gas stations, etc and tires shops.

kawaiia | 1 July 2013

@TI Sailor
Yes, looking at the US page.

AmpedRealtor is right, higher prices for those that didn't reserve prior to the increase in price.

Vall | 2 July 2013

So the most logical thing to di is to get the 19" and then buy aftermarket 20-21-22" wheels, whatever you prefer. Use the 19s for the winter and the other pair for summer. It would have been nice if tesla actually reduced the price of the 21" and introduced one or two new designs, like how BMW and Audi have multiple wheels of the same size. But if they think the buyers will go with it, then why not.

TI Sailor | 2 July 2013

The Model S section of Tesla Gear has the wheels listed for $3500. Presumably that's because tires are extra, and the $4500 option price includes the more expensive Conti's. Does that make sense? Anyone know if the prices on the Gear site changed as well?