Price evolution of a Tesla model S in the United States

1. Relevance of the price of a Tesla model S
2. Price evolution of a Tesla model S
   1. Absolute price of a Tesla model S per year
   2. Inflation adjusted price of a Tesla model S per year
3. Conclusion
4. FAQs about a Tesla model S's price in the the United States
5. Price evolution table and full chart

The Tesla Model S is an all-electric luxury sedan produced by Tesla, Inc. It might not have been the first electric car, but many will remember it as such, since it was the first to gain any significant market share and compete with gasoline cars.

More than a decade after its launch the model S is still one of the most popular electric cars, and paved the way for future Tesla models that came out a few years later, such as the model 3, model X and model Y.

The Model S showed that electric cars could be practical, high-performance, and desirable, which helped to change public perceptions of electric vehicles.

One important reason for its success was it had a much longer range than most other electric cars at the time, which helped to alleviate "range anxiety" (the fear that the car would run out of power before reaching its destination). This, together with a rapidly growing network of Tesla superchargers, helped to make electric cars more practical for everyday use.

Looking back, the Model S was key to the success of Tesla as a company. It helped to build a loyal customer base, establish Tesla's brand identity, and generate revenue to fund future projects.

Price evolution of a Tesla model S

The average price of a Tesla model S between 2012 and 2023 was $53,400, with the lowest price being $26,845 in 2012 and the highest $100,217 in 2023 (at least within the timeframe we have data for).

Yes, I'm sorry to say, but a Tesla model S in the United States has never been as expensive as it is today.

Let's take a closer look at the data in the tables below:

Absolute price of a Tesla model S per year

Our data source for this article was: cargurus .

The absolute price of a Tesla model S in the the United States has gone from $26,845 in 2012 to $100,217 in 2023. That's an absolute increase of $73,372, or 273.32% in a period of 11 years. (go to the next section for inflation-adjusted values).

This increment has not been linear though. During this period of 11 years the price of a Tesla model S actually decreased year over year 1 times, in 2013.

The biggest absolute price decrease in the price of a Tesla model S was in 2013, when the price dropped by $-139, or -0.52%. The biggest price increase was $24,566, or 39.87% in 2021.

With the price increasing most years, it comes as no surprise that the price of a Tesla model S today is higher than what it used to be some years ago.

Inflation-adjusted price of a Tesla model S per year

As accurate as the information above might be, it can also be somehow deceiving. This is because the value of money changes over time, usually decreasing. That means that $1 of today's money cannot buy as much as $1 in the past. This phenomenon is called inflation, and can make it complicated to compare historical pricing data. Luckily, we can adjust for it and calculate what a dollar value of the past would be equal to in today's money.

So let's not take a look at the evolution of the price of a Tesla model S in the the United States, in that same 11 years period between 2012 and 2023, but adjusting prices to inflation (aka. in today's money).

When we adjust for inflation, we see that the price of a Tesla model S also peaked in 2023, when it cost $105,488 (in today's money), and was at its lowest in 2013 when it sold for $35,826.

The biggest drop in adjusted price happened in 2013, when the inflation-adjusted price dropped by $-932 (-2.54%). Even when adjusting for inflation, the biggest price increase of a Tesla model S was still in 2021. However, the $24,566 jump actually felt like $28,337 to the consumer due, to the effect of inflation.

The average price of a Tesla model S during this period of time, adjusting for inflation, has been $64,574, and the most current price of $100,217 is 55.2% above that average.

Conclusion

The absolute price of a Tesla model S has increased by $73,511 ($275%) in the last decade, and $73,372 (273.32%) since 2012. But that comes as no surprise, as prices always tend to increase over time due to inflation.

Now, as we've explained earlier, the absolute price of a product does not necessarily represent its affordability fairly. For that we have to look at its inflation adjusted price, or in other words, the price evolution in today's money.

When we look at the inflation-adjusted price of a Tesla model S, we see that it has varied ± 53.94% over this period of time, and is currently 55.2% more expensive than the average over these years .

Even when adjusting prices for inflation, a Tesla model S prices are still higher in 2023 than they were in 2012. And not just a bit more expensive, we are talking about a significant increase no matter how you look at it!

So if there had to be one single take away from this article it would be this: The average person has to make a bigger economic effort to purchase a Tesla model S today than in the past.

FAQs about the price of a Tesla model S in the the United States