Analyzing Tesla's Model S Holiday Offer

This article examines Tesla's recent revival of the unlimited lifetime Supercharging perk for the Model S and whether the offer provides real value for potential buyers.

Table of Contents

• Challenges in the Luxury EV Market
• The Unlimited Lifetime Supercharging Perk
• Cost Analysis of the Offer
• Who Benefits the Most?
• Final Thoughts

Challenges in the Luxury EV Market

The Tesla Model S, Tesla's original luxury sedan, has faced increasing competition in the luxury EV market. As new players enter the segment, Tesla's market share has reportedly decreased by over 30%. Convincing customers to choose the Model S over alternatives has become a challenge.

The Unlimited Lifetime Supercharging Perk

To boost sales, Tesla has brought back its unlimited lifetime Supercharging perk. Buyers of a new Model S receive free unlimited Supercharging for the lifetime of their ownership. However, Tesla recently increased the Model S's base price from $74,990 to $79,990, adding a $5,000 premium. This raises the question: is the offer worth it?

Cost Analysis of the Offer

Let’s break down the potential savings using industry averages and efficiency metrics:

Based on these figures, it would take 15.5 years to offset the $5,000 price hike under typical charging habits. However, for owners relying entirely on Supercharging, the cost savings materialize much sooner.

Who Benefits the Most?

Different charging behaviors yield varying levels of savings:

• Typical Owners: Those adhering to an 80-20 home-to-Supercharging split would need 15.5 years or 210,000 miles to fully offset the added cost.
• Non-Home Chargers: For the 14% of owners without home charging, the break-even point occurs at approximately 42,000 miles of Supercharger-only use.
• Supercharger-Only Drivers: Owners exclusively using Superchargers could save $1,610 annually, achieving cost-neutrality in just over three years and saving nearly $20,000 over 15.5 years.

Final Thoughts

The unlimited Supercharging perk is an enticing offer, especially for drivers without access to home charging. However, buyers should consider the following caveats:

• The perk is tied to the original owner and cannot transfer upon resale.
• Idle and congestion fees are not included.
• Tesla reserves the right to revoke the perk for "excessive charging."

Ultimately, the decision depends on individual charging habits and driving needs. For some, this deal represents a significant advantage, while for others, the value may not justify the price increase.