Inflation, exchange rates, public policy, and manufacturing efficiencies are just a few of the things that can affect the price of new cars one way or another. Elon Musk remarked that a price hike for the Tesla Model S is probably on the way for Europe in response to a weakening euro.

The Model S has had its price upwardly adjusted twice in the U.S., and will probably do so again in the near future, as there’s no reason to lower the price on a car as in-demand as the Model S. In Europe though the reasoning has more to do with a lower value euro, which has lost about 10% of its value against the dollar since the beginning of the year. As AutoBlog Green points out, this might not affect the price of a pint, but on a $70,000+ luxury automobile it can add up to big bucks. On a conference call to investors, Musk had this to say;

We’re probably going to have to adjust the price of our car in euros upwards because there has been a 7 percent change in the exchange rates of the euro versus the dollar. So we’ll periodically have to make pricing adjustments if the exchange rate band gets too wide. I would certainly encourage anyone in Europe to purchase their car soon because we probably will have to make an adjustment there.

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Tags: Elon Musk, Europe, Model S, prices, Tesla, Tesla Model S, Tesla Motors

About the Author

Christopher DeMorro A writer and gearhead who loves all things automotive, from hybrids to HEMIs, Chris can be found wrenching or writing- or esle, he’s running, because he’s one of those crazy people who gets enjoyment from running insane distances.

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