Tesla dropped base prices on all of its vehicles—but significantly boosted the price of most desirable Autopilot features
Share to twitterTesla Model 3 automobile parked next to a motorcycle along Solano Avenue in Berkeley, California, December 18, 2018.Like buying an airline ticket, one of the challenges of buying a new car is timing when to do it to get the best price. Taking advantages of slow-downs in sales can provide negotiating power with the dealer and often yield direct cash rebates or financing deals. Rarely do manufacturers ever actually reduce the sticker price of a vehicle.
Also commonplace in the industry is the addition of entry level trims that have been decontented to get the price down. In most cases with mainstream models an automaker takes a good, better best approach with the mid-level trims comprising the highest volume of sales, followed by the premium trims and the entry level models typically accounting for about 5 to 10% of sales.
While much of the focus in the announcement was on Musks decision to shutter almost its entire retail network in favor of online sales and home deliveries, Tesla did make other moves to pad the bottom line to compensate for the cuts in the sticker prices. One of Tesla’s biggest selling points besides being electric is the Autopilot features and the promise of full self-driving which effectively got significantly more expensive. .
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