Cars
Tesla's Model Upgrade Is a Pure Profit Play
A new study shows giant car batteries are likely far cheaper than automakers let on.
Tesla’s Model S Sales Soar
Tesla's Model S sedan is now more impressive—and expensive—than ever. The company said on Wednesday morning that, effective immediately, the Model S will come with a 17 percent larger battery and a 6 percent larger price, as the window sticker on a bare-bones vehicle shifts from $71,000 to $75,000.
From an economic perspective, Tesla's upgrade is a no-brainer. Chief Executive Officer Elon Musk's mantra is that demand is overwhelming, making supply the big problem. The company simply can't turn out cars quickly enough to catch up to orders. Any student of the dismal science will tell you that raising prices is a good way to even out the equation.