Tesla Model 3 SR+ range & price increases, $100 non-refundable order fee in effect
Tesla Inc. (TSLA) just raised the price and range of the Tesla Model 3 Standard Range Plus base variant by $500 and +10 miles respectively — the last change in Tesla Model 3 prices was made in July earlier this year when the automaker dropped the price of Standard Range Plus by $1,000.
The last price change in July also came around the same time when Q3 started and now in Q4 Tesla has bumped a price a bit, unlike Q3 where all the Model 3 variants got their prices were slashed down, the recent change has only affected the SR+ variant.
Perhaps in Q3, the aim of Tesla was to increase the production and delivery numbers compared to Q2 (which they eventually achieved) — and now at the year’s end, the Silicon Valley-based automaker intends to increase the revenue and profit margins for which it has been criticized much lately.
Tesla CEO Elon Musk recently admitted that making money is critical to the company’s existense and the achievement of the dream of sustainable transportation.
Tesla cannot continue to lose money. To achieve our goal of environmental sustainability, Tesla must be financially sustainable or we will cease to exist.— Elon Musk (@elonmusk) October 12, 2019
$100 Non-refundable order fee
Another major change that Tesla just brought to their vehicle order placement system is the introduction of the $100 non-refundable order placement fee (see screeenshot below), previously Tesla charged fully refundable $2,500 to place an order for the vehicle.
This strategy might come in handy in decreasing the number of canceled orders and avoiding cash refund expenses, let’s see if this approach works in the long run.
This also reduces the burden of a large initial payment on the customer, so might get more potential customers get interested who expect deliveries after several weeks or months which gives them the time to make financial arrangements.