Tesla Postpones Price Increase Due to ‘Unusually High’ Demand

Buyers of higher trim level Tesla Model S and X models rush to beat a planned price hike and subsequently crash the system.

Tesla has seemingly been in the midst of a major transition lately. First, they laid off off roughly 7% of their workforce early this year. Then, the all-electric automaker announced that it would be closing all of its retail locations and shifting to online-only sales. But now, after “close evaluation” of every single Tesla store, the automaker reversed course and decided to keep some locations open.

To support that decision financially, they subsequently announced a 3% price increase on the more expensive variants of the Model S and X. That increase was supposed to take place on Monday, March 18. But on Tuesday, Tesla announced via Twitter that it was delaying the hike until Wednesday. The reason? The company cited an “unusually high volume” of last-minute orders that caused a processing issue.

Due to unusually high volume, Tesla was unable to process all orders by midnight on Monday, so the slight price rise on vehicles is postponed to midnight Wednesdayhttps://t.co/peahQBSRtd

— Tesla (@Tesla) March 19, 2019

Tesla’s original plan was to pass along the operational savings it incurred from closing its retail locations to the customer by slashing prices on the Model X and S. The move was also supposed to help buoy production of the Model 3, the company’s entry-level vehicle. However, Elon Musk later admitted via tweet that Tesla may have jumped the proverbial gun on those price reductions.

In retrospect, lower price shouldn’t have been offered. Was done so because some simply couldn’t afford it. Prices revert to normal on Monday.

— Elon Musk (@elonmusk) March 12, 2019

None of this affects  the new Model Y, currently scheduled to begin production in fall of 2020. But there’s no telling if/when additional cuts or price changes will be necessary to support it. For now, at least, expect that new Model S or X to cost just a little bit more.

Brett Foote

Brett Foote has been covering the automotive industry for over five years and is a longtime contributor to Internet Brands’ Auto Group sites, including Chevrolet Forum, Rennlist, and Ford Truck Enthusiasts, among other popular sites.

He has been an automotive enthusiast since the day he came into this world and rode home from the hospital in a first-gen Mustang, and he's been wrenching on them nearly as long.

In addition to his expertise writing about cars, trucks, motorcycles, and every other type of automobile, Brett had spent several years running parts for local auto dealerships.

You can follow along with his builds and various automotive shenanigans on Instagram: @bfoote.