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I'm not sure Tesla needs to drop the price back at all. I recall many iPhone buyers who were upset when Apple reduced the iPhone price.

If Tesla's costs to make each Model S go up, they can't avoid raising their prices.

It'd be nice if they were dropping prices, but I assume only a new model of Tesla would feature a lower price.

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The early adopters are already "ahead" (pricing wise) on this decision for now, and most new car buyers seem to accept gradual depreciation as a fact of life. I also don't think Tesla could unveil a radical price cut like the iPhone scenario (~30%) without some serious red ink and damaging their price anchor against German luxury cars.

I'd assumed costs gradually decreasing over time - especially in the (currently) very expensive battery technology. I'd guess they'd want to pass these savings on to increase market share as quickly as possible, rather than try and squeeze some extra margin by maintaining prices.

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