'Expect a Few Surprises': Tesla (TSLA) to Launch Model S Plaid Today, Raises Price by $10,000

June 10, 2021 6:36 AM EDT

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Tesla (NASDAQ: TSLA) is scheduled to launch Model S Plaid today as it enters the high-end market segment.

The EV company said in a tweet that the streaming event from its Fremont facility will start at 7 PM PT. The car is priced at $129,900, which is $10,000 more than previously said.

"The Model S has not been changing a lot in terms of looks over the past almost decade. I think Tesla has to offer consumers something more," said Jessica Caldwell, executive director at car information provider Edmunds, ahead of the launch event.

Some industry experts believe Tesla was kind of forced to come up with a more luxury vehicle to stop customers from going to other carmakers. Both Mercedes-Benz and Porsche have announced plans to launch electric-powered luxury sedans.

"The Model S Plaid is definitely intended to help reduce the migration of current Tesla owners out of Tesla," said Ed Kim, vice president at consultancy AutoPacific. "I think what we're seeing now is that Tesla can no longer operate in a vacuum."

A few days ago, Elon Musk said Tesla canceled plans to develop Model S Plaid Plus.

“Model S goes to Plaid speed this week. Plaid+ is canceled. No need, as Plaid is just so good,” he said in a tweet Sunday.

On Plaid, Musk said that it is the “quickest production car ever made of any kind. Has to be felt to be believed.”

During the earnings call in April, Musk said:

“There were more challenges than expected in developing the Plaid Model S or the Paladium program, which is a new version of the Model S and X, which has a revised interior and new battery pack and new drive units and new internal electronics and has resembled a high-station level infotainment system. It took quite a bit of development to ensure that the battery of the new S and X is safe.”

Fred Lambert, Editor-in-Chief at Electrek, expects Elon Musk’s company to “unveil a few surprises that will raise the bar.”

Tesla stock price is trading around the $600.00 mark ahead of today’s event.

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