After launching at $1,000, the red multi-coat option on the Model 3 from Tesla now costs $2,500 after the price bump over the weekend. The color might cost significantly more than the standard black, but it’s still going to be in demand for several reasons.
The first one is that there are already takers for the red who won’t mind an extra $500 on the bill when it comes. That’s one supply factor right there.
Second, because it costs quite a bit more, fewer of them will be produced, giving it more value on the resale market.
Third, in an earlier survey by Electrek, red was the third most popular color option after silver and blue. In reality, black and white are the fastest-selling Model 3 colors, says Elon Musk, Tesla’s CEO. However, red is a ‘statement color’, like a yellow Lamborghini or a red Ferrari, which means it will appeal to trendsetters, who are Tesla’s mainstream customers anyway.
Fourth, red is and will always be a classic sports color. Anyone ordering the DM AWD or P3D is seriously going to consider red before settling on anything else.
These are all reasons why the red multi-coat might continue to be in demand, but the biggest proof of it is that Tesla was able to increase its price. No company ever increases price on anything until it is absolutely sure that demand won’t slacken too much. It’s not a risk they’d be willing to take.
That’s why we’re confident that the red multi-coat option will keep selling in the same proportion as when it was $1,000 and $2,000. Color is a critical aspect of choosing a car, and most people with $50,000 to spend on a new electric car aren’t going to change their choice for $500. It could make a difference to a few buyers who don’t feel the red is worth the extra $500, but we don’t think it’s going to skew the numbers against that color.
