Boston, MA 02/06/2014 (wallstreetpr) – Tesla Motors Inc (NASDAQ:TSLA) sells its new Model S cars at $63,570 now a days. If the $7,500 which is the federal Tax Credit is included the maximum price for the new models is $71,270. However, used car deal portal CEO Phong Ly notes that those in the market for the Model S are willing to pay nearly $99,000 for a used car.
Unbelievable but true!
The demand for the Model S has spiraled upwards in the recent months, while there are not as many cars in Tesla Motors Inc (NASDAQ:TSLA) inventory to supply. This has created a niche market price for used Model S cars, he explains.
In sharp contrast are the Nissan Motor Co., Ltd. (ADR) (OTCMKTS:NSANY) Leaf and Chevron Corporation (NYSE:CVX) Volt which are selling at the fixed market prices.
Musk admits production issues
Tesla Motors Inc (NASDAQ:TSLA) CEO Elon Musk has confirmed that there are challenges that are leading to limited production of the Tesla Model S. The issue with this model he says is, “production constraint, and not demand constrain.”
Tesla Model S prices vary
Tesla Motors Inc (NASDAQ:TSLA) Model S sedans vary on the used market car scene subject to the features they carry. Where the basic model is priced at $63,000 for a used car, the more advanced models, which typically have higher battery configurations, are known to sell sometimes at prices of $85,900. For the high-end complete Model S car, with premium features and maximum battery capacity the prices could range in the region of $110,000.
The difference between a new car for a Model S buyer is in the region of $5,000 and more. Interestingly, Ly noted that the most of the re-sale Model S cars have an average use line of 3,700 miles. This is interesting data for Tesla Motor production team, indeed.
Now or Later?
So, if you are in the market for a used car and particularly for a Model S, you need to make a decision. Again, for instant ownership of your dream hybrid mean machine, you will have to pay premium prices. However, a longish wait may fetch you the same model, priced lower along with the Federal tax credit. As the CEO of Tesla Motors Inc. (NASDAQ:TSLA) also does not offer indications of production outstripping demand, you may well be prepared to wait longer for your coveted Model S.