In less than a week, Tesla Motors Inc (NASDAQ:TSLA) will unveil its first mass-market offering for the electric vehicle (EV) industry which will be priced at half the base price of its premium sedan, the Model S. Tesla officials have been hinting that Model S could become more expensive as early as next month, following the Model 3 event.
The electric vehicle (EV) maker has now officially stated on the matter and confirmed that Model S “price changes” (not price hikes) will occur in early April. An e-mail statement was sent by a Tesla spokesperson to Benzinga and Electrek on Thursday.
“We don’t comment on rumor or speculation about future releases. Tesla is constantly innovating and adding new features to our vehicles to perpetually improve Tesla vehicles for our existing and future customers. We price our vehicles consistently throughout the world which requires us to adjust pricing to foreign currency exchange rates. We have let customers know that some price changes will take effect in early April. We always encourage those interested in purchasing Model S to place their order so they can start enjoying the many benefits of Model S today.”
Based on commentary of Tesla’s salesperson, Model S price is expected to change in the US, therefore, the foreign currency rates cannot be the sole reason. Although the company does not respond to rumors or speculations, experts have been betting on the new features or innovations that may come along with the price changes.
Tesla recently added two new features in the Model S Design Configuration, the Slipstream Wheels and Stand Center Console, which could be made a standard for all Model S variants. The automaker could also slightly alter the Model S design since it has the same design for four years now.
Last month when Tesla discontinued its Model S 85kWh versions, Global Equities Research’s Trip Chowdhry stated the move should be considered as a positive development and a step forward in preparation for the Model 3 launch. He believes that the company is forming a “degree of separation” between the premium and the mass-market sedans. The Tesla bull expects Model 3 to have battery pack of at most 60 kWh and Model S to have at least 70 kWh.