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The Upside of Tesla’s Controversial Pricing Model | The Motley Fool

We aren’t used to thinking of products this way.

This is largely why Tesla Motors’ (NASDAQ:TSLA) pricing model around battery capacity is so controversial in the first place. We’re accustomed to the idea that you purchase a product for a specific price, and once the product is yours, you have full functionality in almost every way. Meanwhile, Tesla continues to explore unorthodox pricing strategies in which you purchase a product for a specific price, but the functionality that you receive is commensurate with the price that you pay.

Controversy aside, there is a clear benefit to the consumer: flexibility.

Would you rather buy a new one?
Consider other products and devices that you own. If you want to upgrade a basic specification about the product at a later time, most of the time you can’t without having to buy another one. Want more storage capacity on your smartphone or a faster processor on your laptop? Oftentimes (particularly with highly integrated products), you’ll need to buy another one with the higher specifications that you’re looking for, and then probably sell your old one in an attempt to recoup some of the cost.

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The Upside of Tesla’s Controversial Pricing Model — The Motley Fool.

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