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Tesla Motors Sets New Pricing for Award-Winning Model S
New Pricing Reflects First Increase in Four Years at Only Half the Rate of Inflation

PALO ALTO, CA -- (Marketwire) -- 11/29/12 -- Tesla Motors (NASDAQ: TSLA) originally unveiled the Model S in March 2009 with a base price of $57,400 ($49,900 after federal tax credits). Today, Model S is the most award-winning car of the year and the base price remains at $57,400, the same price set over three and a half years ago. During this same period of time most automotive companies have had at least three price increases and general inflation (CPI) has gone up 8.75 percent. A straight 8.75 percent CPI increase would now yield a base price for Model S of $62,400, an increase of $5,000. Tesla is increasing prices only half that amount, giving Model S a new base price of $59,900 before federal tax credits.

The price increase announced today will be for new reservations starting January 1, 2013. These new reservations will begin deliveries several months later, which means the new prices will actually go into effect over four years after Tesla originally set base pricing for Model S.

"We believe it is a positive reflection on our design process and disciplined, long-term planning that enabled us to increase prices for the first time in four years at only half the rate of inflation," said George Blankenship, vice president of worldwide sales and ownership experience. "As a company we will always strive to deliver our customers the most innovative cars in the world while minimizing price increases as we have done today."

This price increase will not apply to anyone who has or makes a reservation by end of day on December 31, 2012... as long as they finalize their order within a reasonable, predefined timeframe after being invited to configure their Model S.

In Canada, the base price of Model S will increase $2,600CAD and implementation will be the same as in the U.S.

About Model S
Model S is the world's first premium sedan built from the ground up as an electric vehicle and has been engineered to elevate the public's expectations of what a premium sedan can be. At the heart of Model S is the proven Tesla powertrain, delivering both unprecedented range and a thrilling drive experience. With a rigid body structure, nearly 50/50 weight distribution and a remarkably low center of gravity, Model S offers the responsiveness and agility expected from the world's best sports cars while providing the ride quality of a luxury performance sedan. Model S has received many awards and accolades during its first year on the market, including Motor Trend's prestigious 2013 Car of the Year.

Setting the bar for electric driving range, Model S offers 40 kWh, 60 kWh and 85 kWh battery options. All deliver unprecedented range, with the 85 kWh variant achieving an EPA-certified range of 265 miles. All three batteries use automotive-grade lithium-ion cells arranged for optimal energy density, thermal management, and safety.

Without an internal combustion engine or transmission tunnel, the interior of Model S has more cargo space than any other sedan in its class and includes a second trunk under the hood. The Model S interior features a 17" in-dash touchscreen with Internet capabilities, allowing for streaming radio, web browsing and navigation.

About Tesla
Tesla's goal is to accelerate the world's transition to electric mobility. Palo Alto, California-based Tesla designs and manufactures EVs and EV power train components for partners such as Toyota and Daimler. Tesla has delivered more than 2,400 Roadsters to customers worldwide. Model S, the first premium sedan to be built from the ground up as an electric vehicle, began deliveries in June 2012.

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Media Contacts
Christina Ra
Tesla Communications
310-400-0276

Shanna Hendriks
Tesla Communications
650-681-5179

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