Tesla Motors is increasing the base price of the cheapest version of its Model S sedan. Starting Wednesday, the 60 kWh entry-level Model S with rear-wheel drive will cost buyers $2,000 more for the basic version without any add-ons.
As of now, the Model S 60 costs $737 a month on lease and $66,500 if paid for in full by cash. In two days, the price will go up to $777 a month or $68,500. Tesla points out on its website though, that after accounting for $7,500 federal tax credit and estimated savings in gasoline expenses over five years, the effective price will be lower by about $70 every month or $13,000 in all. Fifteen states (listed on Tesla’s website) also have various forms of tax credits or rebates for electric vehicles, making the car even cheaper if you happen to live in any of them.
The all-wheel drive variant of Model S 60 will cost $858 a month on lease and $73,500 in cash. Compared to the rear-wheel drive, it has an extra 8 miles of range (total 218 miles) on a single charge and goes from 0 to 60 mph in 5.2 seconds, 0.3 seconds faster than the rear-wheel version.
If the car is ordered now, delivery will be given in December. And any additions and customization will cost over and above the base price.
The price hike comes even as CEO Elon Musk said last week he doesn’t believe President-elect Donald Trump’s proposal to take away federal tax credits given to zero-emission vehicles was going to affect his company’s finances.
Shares of Tesla lost 1.93 percent during trade Friday on Nasdaq.