Tesla Breaks Another Rule -- Will It Pay Off?

Forget waiting to actually claim the mantle market leader. Tesla Motors (Nasdaq: TSLA  ) is raising prices on its Model S sedan as a soon as possible, while demand is high for Motor Trend's 2013 "Car of the Year."

Those who've already reserved the car, and those who reserve soon, should be spared any increase. Everyone else can expect to learn more about the details of the new Model S pricing scheme before year's end. Either way, it's a bold strategy and should help Tesla invest for expanding operations. Find out more in the video below.

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Read/Post Comments (5) | Recommend This Article (3)

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  • Report this Comment On November 27, 2012, at 5:54 PM, SleepingDog355 wrote:

    Saying something positive about TSLA on Motley Fool? Looks like you're a bit a rule breaker yourself.

  • Report this Comment On November 28, 2012, at 2:19 PM, kirkdm wrote:

    Tesla said that ther goal was to get the price point down to $50K to offer a volume EV to the market.

    Apparently this strategy is now reversed. is thier order book that full that they can start to actually make money. As an investor some one in the Fool's Court needs to look at the real break even price point for this product.


  • Report this Comment On November 28, 2012, at 3:53 PM, erwin94301 wrote:

    This is a brilliant move. Given both buyers and reviewers are thrilled with the product, Tesla has clearly perfected the Model S product. Demand is higher than supply, so capturing a higher profit margin for the company to secure it's financial position makes lots of sense.

    I expect that Tesla will, in time, reveal it's plans for a lower priced model which has greater mass affordability. For now, building out the charging infrastructure, completing the backlog of Model S orders, and shoring up the balance sheet make me as an investor happy.

  • Report this Comment On December 01, 2012, at 9:02 AM, sixgun721 wrote:

    The range of this car makes it an attractive vehicle in the 'supercharger' market area. This could be the beginning of the electric car revolution and the opportunity to own stock now could pay huge in the long run.

  • Report this Comment On December 01, 2012, at 9:05 AM, sixgun721 wrote:

    If you read the COTY article in Motor Trend magazine you'll know they have been criticized in the past by the car guys who read the mag for liking an electric car. As a muscle car owner and racecar fan I truly believe the Tesla S has great potential as a commuter vehicle.

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