Brexit Will Not Have an Effect on Tesla Prices...For Now

Jan 04, 2017 10:53 AM EST | Danica Esguerra

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It is indeed a great way to start the new year in the United Kingdom. Tesla announced that they'll be delaying their price increase this month.

Tesla announced back then that they'll be increasing the prices of all of their models, following the Brexit move in the UK during the summer of 2016. An increase of 5% in the prices on January 1, 2017 is the initial statement by the electric vehicle manufacturer. But now, Britain will be having a grace period. Tesla decided to delay the price increase from January 1 to January 15, giving the British people two weeks to buy Tesla's products at their old prices.

The reason for the sudden decision to move the price increase is the high demand for their products. Because of the Brexit that happened last year, the British pound is getting weaker compared to the other currencies, thus, urging the electric vehicle company to increase their prices. In a statement from Tesla, they said that "due to exceptionally high demand at the end of the year, we have extended the order date by two weeks for customers who were unable to finalize their purchase by December 31."

For example, a brand new Model S with 248-mile range has a price of £58,900 (around $72,400). Once the 5% increase of price happens, the Model S will now be at £61,845 or $76,020 USD. The price difference is clearly visible when comparing the starting price of an EV to a 5% increased price of it.

It's not only the EV customers that are affected by the weakening British currency. Ever since Brexit happened, a lot of goods have their prices increased. Consumer goods, books, and many got their prices up because of the Brexit effect in the British economy. EV fans should observe how will the 5% increase of prices affect Tesla's sales within the year.

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