Tesla delivers Apple-style incremental upgrade to its Model S image

The California-based electric automaker, led by billionaire entrepreneur and co-founder Elon Musk seems to treat its business more from the perspective of a technology company, rather than a traditional carmaker.

And when it comes to that perspective, one particular tech giant springs to mind – Apple. The Cupertino giant mesmerized the entire world back in 2007 when it unveiled the original iPhone – the high-end mobile device that sparked the smartphone craze. The company also rose to fame with its incremental updates design: every two years a completely new design surfaces, and in the meantime an “S” version of that model keeps the market going with useful, albeit smallish updates.

No wonder that Tesla, a company that is anything but a conventional automaker, paid attention to Apple’s procedure – after all, its market value stands testament to its success. So, yesterday, Tesla‘s Model S became even better and also more expensive. The company announced that starting from that moment the Model S will be delivered with a battery larger by 17 percent larger battery – and the price tag was also amended by 6 percent. The window sticker of the most affordable Model S will jump from $71,000 to $75,000.

Musk’s explanation for this is rather simple and it’s been known for some time already: the chief executive officer stated on numerous occasions that demand is higher than production, making supply the largest issue for the automaker. So, raising the price is a great way to lift profits and even the supply-demand equation.

Via Bloomberg