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How Much Will Electric Vehicle Buyers Pay for Additional Range?
With the introduction of its upcoming Model S, Tesla Motors is putting a price tag on range and asking buyers “How much are you willing to spend?”
Since lithium-ion batteries are costly, increased range carries a hefty price tag. For the Model S, a jump from 160 to 230 miles costs $10,000. Moving up to 300 miles is an additional $10,000. Tesla will soon discover what buyers are willing to part with an extra $10,000 for 70 miles of added range. Other automakers will likely keep an eye on the percentage of buyers who opt for one of the more costly Tesla Model S variants.
In the future, battery costs will drop. But for now, all eyes are on the Tesla Model S, as its the first vehicle to offer increased range as an option.
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How Much Will Electric Vehicle Buyers Pay for Additional Range?
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