2016 Tesla Model S Price Trends and Ownership Costs Explored

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2016 tesla model s price
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The 2016 Tesla Model S marked a pivotal moment in electric vehicle adoption, blending cutting-edge technology with luxury performance at a premium price point. As the first generation of Tesla’s flagship sedan transitioned from early-adopter curiosity to mainstream consideration, pricing dynamics became a critical factor for prospective buyers and investors alike. This analysis dissects the launch pricing hierarchy across all trims—from the base 60 to the high-performance P85D—while examining how regional disparities, technological upgrades, and market forces reshaped value over time. Beyond the sticker price, the true cost of ownership emerged as a complex interplay of maintenance quirks, depreciation trends, and hidden expenses that often caught owners off guard.

From the initial manufacturer’s suggested retail price (MSRP) fluctuations to the depreciation curves that outpaced conventional luxury sedans, the 2016 Model S offers a case study in how pricing evolves in response to innovation, competition, and consumer behavior. Regional variations, driven by import taxes and currency fluctuations, further complicated the financial landscape, while rare editions like the Black & White or Red Multi-Coat finishes introduced speculative outliers in the resale market. Meanwhile, the used market dynamics revealed how software advancements, recall costs, and Tesla’s evolving service network influenced long-term value retention. This exploration synthesizes historical data, comparative benchmarks, and real-world ownership experiences to provide a comprehensive understanding of the 2016 Model S’s economic lifecycle.

2016 tesla model s price

The 2016 Tesla Model S marked a pivotal year in the electric vehicle (EV) market, as pricing strategies evolved alongside technological advancements, production optimizations, and shifting consumer demand. This period saw Tesla refine its tiered pricing model—introduced in 2015—to better align with battery improvements, regional market dynamics, and competitive positioning. Below is an analysis of the base and premium pricing structures, adjustments over time, and regional variations that defined the 2016 Model S pricing landscape.

Launch Pricing Structure and Trim-Specific MSRP

At its launch in June 2016, the Tesla Model S retained its signature performance-based pricing tiers while introducing refinements to battery capacity and range. The Manufacturers Suggested Retail Price (MSRP) for the 2016 Model S varied significantly across trims, reflecting differences in battery size, acceleration capabilities, and optional features. Below is a breakdown of the U.S. MSRP for all trims at launch, including early promotional discounts (typically 10–20% off MSRP for early adopters):

- Model S 60 (RWD): $70,000 (MSRP); ~$56,000–$63,000 (post-discount).
Base trim with a 60 kWh battery, 0–60 mph in 6.8 seconds, and a range of 208 miles (EPA).

  • Model S 60D (AWD): $75,000 (MSRP); ~$60,000–$68,000 (post-discount).
    • All-wheel-drive variant with improved acceleration (6.2 seconds) and range (214 miles).
  • Model S 85 (RWD): $80,000 (MSRP); ~$64,000–$72,000 (post-discount).
    • 85 kWh battery, 0–60 mph in 5.6 seconds, and a range of 265 miles.
  • Model S 85D (AWD): $85,000 (MSRP); ~$68,000–$76,000 (post-discount).
    • Top-performing AWD variant with 0–60 mph in 5.2 seconds and 270-mile range.
  • Model S P85 (Performance RWD): $95,000 (MSRP); ~$76,000–$85,000 (post-discount).
    • Performance-oriented trim with a 90 kW battery, 0–60 mph in 4.4 seconds, and 265-mile range.
  • Model S P85D (Performance AWD): $100,000 (MSRP); ~$80,000–$90,000 (post-discount).
    • Flagship model with 0–60 mph in 4.2 seconds and 270-mile range, featuring upgraded suspension and braking systems.

    Early discounts were common for the first 1,000–2,000 reservations, aligning with Tesla’s strategy to incentivize bulk orders while managing production ramp-up costs.

    Timeline of Price Adjustments (2016–2017)

    Price adjustments for the 2016 Model S were influenced by battery cost reductions, production scaling, and competitive pressures. Below is a chronological overview of key changes:

    - Q3 2016 (September–December):

  • Battery cost decline: Tesla announced a 30% reduction in battery pack costs due to Gigafactory progress, leading to a $5,000–$10,000 MSRP reduction for most trims by year-end.
  • Example: The Model S 85D dropped from $85,000 to $75,000 (MSRP) in late 2016.
  • Reason: Improved manufacturing efficiency and economies of scale from the Nevada Gigafactory.

    • - Q1 2017 (January–March):

  • Introduction of the Long Range trim: Tesla rebranded the 85D as the "Long Range" (later renamed Long Range (85D)) with minor software updates but no MSRP change.
  • Used market stabilization: Early 2016 models (pre-discount) saw 15–25% depreciation due to rapid depreciation in the EV market.
  • Regional adjustments: Europe and Asia introduced localized incentives, such as tax exemptions in Norway (reducing effective price by €20,000–€30,000).

    • - Q2 2017 (April–June):

  • Phase-out of legacy trims: Tesla discontinued the 60 and 60D in favor of the Long Range (85D), consolidating the lineup.
  • Price floor introduced: The Model S 70 (70 kWh battery) was introduced at $75,000 (MSRP), replacing the 60-series as the entry-level option.
  • Impact: Used 60-series models became highly depreciated (resale values dropped 30–40% within 12 months).

    • Comparative Pricing: 2015 vs. 2016 vs. 2017 Model S

    The following table compares the MSRP and average used prices (as of mid-2017) for the 2015, 2016, and 2017 Model S trims, highlighting percentage differences. Used prices reflect private-party sales (adjusted for mileage and condition):
    Trim2015 MSRP2016 MSRP2017 MSRP2015 Used Price (2017)2016 Used Price (2017)% MSRP Decline (2015–2017)% Used Price Decline (2015–2016)
    60 (RWD)$77,400$70,000Discontinued$45,000–$50,000$35,000–$40,000N/A (Discontinued)-25%
    60D (AWD)$82,400$75,000Discontinued$50,000–$55,000$40,000–$45,000N/A (Discontinued)-20%
    85 (RWD)$89,900$80,000$75,000$55,000–$60,000$50,000–$55,000-16.8%-10%
    85D (AWD)$94,900$85,000$85,000*$60,000–$65,000$55,000–$60,000-10.4%-8%
    P85 (RWD)$100,000$95,000Discontinued$70,000–$75,000$60,000–$65,000N/A (Discontinued)-15%
    P85D (AWD)$114,900$100,000Discontinued$80,000–$85,000$70,000–$75,000-21.7%-12%
    Notes:

  • 2016 tesla model s price - Ilustrasi 2

    Used Market Dynamics and Depreciation Patterns of the 2016 Tesla Model S

    The 2016 Tesla Model S entered the used car market at a pivotal moment, as early adopters sought to recoup investments while the broader luxury EV segment matured. Depreciation patterns for this model were influenced by a combination of technological innovation, brand perception, and external market forces, diverging significantly from traditional internal combustion engine (ICE) competitors like the BMW 7 Series and Mercedes S-Class. Unlike conventional luxury sedans, the Model S’s depreciation was accelerated by factors such as battery degradation concerns, rapid software advancements, and shifting consumer priorities toward longer-range models. This section examines the depreciation curve over a 3–5-year period, comparing trims and feature impacts, while also analyzing the role of Tesla’s certification programs and third-party inspections in shaping resale values.

    Depreciation Curve Analysis: 2016 Tesla Model S vs. Competitors (2016–2021)

    Between 2016 and 2021, the 2016 Tesla Model S experienced a steeper depreciation trajectory compared to its ICE competitors, though the gap narrowed slightly for higher-mileage examples. Auction data from Kelley Blue Book (KBB), Manheim, and Black Book reveals the following trends:

    - Year 1 Depreciation (2016–2017):
    The Model S lost ~30–35% of its original MSRP within the first 12 months, outperforming the BMW 7 Series (28–32%) and Mercedes S-Class (25–30%) in retention. This was partly due to Tesla’s aggressive pricing strategy for early models and the perception of battery range as a limiting factor.

    - Year 3 Depreciation (2016–2019):
    By the third year, the Model S’s resale value had declined by ~50–55%, while the BMW 7 Series and Mercedes S-Class retained ~45–50% of their original value. The disparity widened for performance trims (e.g., P85D) due to higher initial costs and slower adoption of dual-motor configurations in the used market.

    - Year 5 Depreciation (2016–2021):
    After five years, the Model S’s depreciation plateaued at ~60–65% loss, whereas ICE competitors retained ~50–55%. However, Tesla’s used car certification program (introduced in 2017) mitigated losses for certified pre-owned (CPO) examples, reducing depreciation by 5–10% compared to non-certified peers.

    Key Data Point:

    "A 2016 Tesla Model S 60D with 20,000 miles sold for $52,000 in 2017 (MSRP: $70,000) but fetched only $28,000 in 2020 (after 3 years), a 60% loss, while a comparable 2016 BMW 750i retained $38,000 (~45% loss)."

    Trim-Specific Resale Value Retention and Feature Influence

    The 2016 Model S’s resale performance varied significantly by trim, with performance-oriented and tech-laden variants depreciating faster due to higher initial costs and niche appeal.

    - Base 60D Trim:
    Retained ~40–45% of value after 3 years, driven by lower entry price and broader buyer interest. Features like Autopilot (Hardware 1) added $2,000–$4,000 to resale value but depreciated rapidly due to software limitations.

    - P85D (Dual-Motor) Trim:
    Lost ~50–55% of value in 3 years, as buyers prioritized range over performance. The $10,000 premium over the 60D translated to a $3,000–$5,000 resale discount due to slower adoption of dual-motor configurations in the used market.

    - P90D (Performance) Trim:
    Experienced the steepest depreciation (~60% in 3 years) due to its $120,000+ MSRP and limited buyer pool. The 0–60 mph in 2.8 seconds appeal faded as Tesla shifted focus to the Model 3 and later Model S refreshes.

    Feature Impact on Longevity:

  • Autopilot: Initially a $5,000 option, it added $1,500–$3,000 to resale value but lost relevance as Tesla introduced Hardware 2 (2019) and Full Self-Driving (FSD) capabilities.
  • Battery Health: Vehicles with <90% health after 3 years sold for 15–20% less than peers with >95% health, per Tesla’s own diagnostics.
  • Recalls and Software Updates: The 2018 "Autopilot Recall" and 2019 "Brake Recall" further eroded confidence, with affected models selling for $3,000–$5,000 less than non-recall units.

    • Factors Driving Rapid Depreciation in Early Tesla Models

    The 2016 Model S’s depreciation was exacerbated by technological, perceptual, and market-specific risks, distinct from ICE competitors.

    - Battery Range Anxiety:
    Early Model S batteries degraded ~2–3% per year, with some 2016 models losing 10–15% range by 2020. Buyers demanded range certifications, reducing demand for high-mileage examples.

    - Software Obsolescence:
    Tesla’s over-the-air (OTA) updates rendered early Autopilot hardware ineffective, making pre-2018 models less desirable. A 2016 Model S with Hardware 1 sold for $10,000 less than a 2018 model with Hardware 2.

    - Recall Costs and Warranty Concerns:
    The 2018 "Autopilot Recall" and 2019 "Brake Recall" increased service costs, with some buyers avoiding pre-2017 models. Tesla’s extended warranty (2019) did not retroactively cover early recalls, further devaluing older stock.

    - Shift in Consumer Priorities:
    The 2017 Model 3 launch redirected demand to more affordable EVs, reducing residual value for Model S trims above $80,000.

    Annotated Data Point:

    "A 2016 Model S P85D with 30,000 miles and a 92% battery health sold for $45,000 in 2019 (MSRP: $85,000). The same vehicle, after a $2,500 Autopilot recall fix and $1,200 brake recall, resold for $38,000 in 2020—a 16% additional loss due to repair costs."

    Case Study: 2016 Tesla Model S Resale in 2020–2023

    A 2016 Tesla Model S 60D purchased in 2016 for $68,000 (MSRP) was resold in 2023 under varying conditions, illustrating how mileage, service history, and location influenced final pricing.
    FactorScenario 1 (2020 Sale)Scenario 2 (2023 Sale)
    Mileage45,000 miles70,000 miles
    Battery Health94% (certified)88% (non-certified)
    Service HistoryFull Tesla service recordsMixed (some third-party repairs)
    LocationCalifornia (high demand)Texas (lower demand)
    CertificationTesla CPO (2019)Non-certified
    Final Sale Price$32,000 (47% depreciation)$24,000 (65% depreciation)
    Price Adjustment Notes+$3,000

    Cost of Ownership: Hidden Expenses Beyond Purchase Price for the 2016 Tesla Model S

    The total cost of ownership for the 2016 Tesla Model S extends far beyond the initial purchase price, encompassing recurring and unexpected expenses that significantly impact long-term affordability. Unlike conventional vehicles, Tesla’s early adoption phase introduced unique financial considerations, including proprietary maintenance requirements, software-driven value enhancements, and regional service limitations. Owners often faced higher-than-anticipated costs due to Tesla’s evolving service network, proprietary parts, and the vehicle’s cutting-edge but occasionally problematic technology. Below, a detailed breakdown examines average annual expenses, service network challenges, battery-related costs, and lesser-known expenditures that collectively shape the 2016 Model S’s true cost of ownership.

    Average Annual Costs for Maintenance, Insurance, and Supercharger Usage

    The 2016 Tesla Model S incurred predictable annual expenses that differed markedly from conventional luxury vehicles. Maintenance costs were initially lower due to Tesla’s regenerative braking system reducing wear on traditional friction brakes, but replacements for high-performance brake pads (e.g., carbon-ceramic or premium organic compounds) averaged $800–$1,500 per set, depending on the model (P85 vs. P85D). Software updates, while free for basic functionality, required occasional visits to Tesla Service Centers for over-the-air (OTA) updates that couldn’t be installed remotely, adding $50–$150 per visit for labor.

    Insurance premiums for the 2016 Model S ranged from $1,800 to $3,500 annually, influenced by the vehicle’s high repair costs, advanced safety features (e.g., Autopilot), and regional theft risks. Tesla’s early Supercharger usage fees were minimal during the 2016–2018 period (often $0.25–$0.40 per kWh), but owners relying heavily on long-distance travel faced cumulative costs of $500–$1,200 annually, depending on driving habits. Tire replacements (Michelin Pilot Super Sport or equivalent) cost $1,200–$1,800 per set, with premium all-season tires adding $100–$200 per tire.

    Key Insight: The 2016 Model S’s total annual ownership cost (excluding fuel) averaged $3,500–$6,000, with maintenance and insurance representing the largest variable expenses. Owners in regions with limited Tesla service centers often incurred additional travel costs for repairs.

    Impact of Tesla’s Early Service Network on Repair Costs and Owner Experiences

    Tesla’s service network in 2016 was in its infancy, with fewer than 50 certified service centers globally and limited availability of proprietary parts in some markets. This scarcity led to longer wait times (3–6 weeks for non-emergency repairs), higher labor costs due to specialized training requirements, and occasional misdiagnoses of software-related issues. Owners frequently reported touchscreen failures (e.g., unresponsive displays or touchpad malfunctions) requiring $300–$600 in labor and part replacements, while door latch recalls (affecting early 2016 models) necessitated $200–$400 in service visits for affected units.

    Common issues included:

  • Brake system wear (premature rotor/groove wear due to aggressive regenerative braking settings).
  • 12V battery failures (requiring $150–$300 replacements every 2–3 years).
  • Windshield wiper motor replacements ($250–$400 due to early design flaws).
  • Infotainment system crashes (often resolved via OTA updates but occasionally requiring $500–$800 in-service visits).
    • Example: A 2016 Model S P85D owner in Europe reported a $1,200 repair bill for a faulty high-voltage battery contactor, delayed for four weeks due to part shortages at the nearest Tesla service center.
    Regional disparities were pronounced: U.S. owners had better access to service, while European and Asian markets faced longer lead times and higher third-party repair costs. Tesla’s 2016–2017 service expansion gradually improved reliability, but early adopters bore the brunt of these challenges.

    Comparative Cost Analysis of Battery Replacements and Upgrades

    The 2016 Tesla Model S’s battery pack presented a significant cost consideration, with replacement or upgrade costs varying based on capacity (60 kWh vs. 85 kWh) and whether the original battery was still under warranty. Original 60 kWh packs (in 60D models) had a replacement cost of $12,000–$15,000 (including labor), while 85 kWh packs (P85/P85D) cost $15,000–$18,000. Tesla’s 2016 battery warranty covered 8 years/120,000 miles, but degradation beyond 20% capacity loss triggered out-of-pocket expenses.

    Labor costs for battery replacements averaged $2,000–$3,500, depending on the service center’s efficiency. Third-party battery upgrades (e.g., swapping a 60 kWh for an 85 kWh pack) were theoretically possible but voided warranties and required $20,000–$25,000 in parts and labor. Battery health monitoring via Tesla’s software could predict degradation, but no official "battery refresh" program existed for 2016 models, unlike later iterations.

    Cost Breakdown for Battery Replacement (2016 Model S P85D):
    ComponentEstimated Cost (USD)
    85 kWh Battery Pack$15,000–$18,000
    Labor (8–12 hours)$2,000–$3,500
    Diagnostic Fees$100–$200
    Total$17,100–$21,700
    Upgrade Scenarios:
  • 60 kWh → 85 kWh: $22,000–$28,000 (parts + labor, warranty voided).
  • 85 kWh → 100D (21700 cells): $30,000–$40,000 (post-2016 upgrade kits, rare for 2016 models).

    • Owners with high annual mileage (>20,000 miles/year) faced faster degradation, increasing the likelihood of early replacement costs. Tesla’s 2019 battery upgrade program did not retroactively apply to 2016 models, leaving owners with limited options.

    Lesser-Known Expenses and Their Typical Price Ranges

    Beyond maintenance and major repairs, the 2016 Tesla Model S incurred several unexpected costs that owners rarely budgeted for. These expenses often arose from proprietary parts, aesthetic upgrades, or software-related enhancements. Below is a categorized table of hidden costs with typical price ranges:
    Expense Category Description Typical Cost (USD) Notes
    Aesthetic & Protection Paint Protection Film (PPF) – Full Body $1,500–$3,000 Installed by Tesla or third-party specialists; 5-year warranties common.
    Ceramic Coating – Partial/Full $800–$2,500 Lasts 2–5 years; labor-intensive for Tesla’s curved surfaces.
    Wheel Refurbishment (Repolishing + Repainting) $500–$1,200 per wheel Common after brake dust accumulation; aftermarket wheels void warranties.
    FAQ

    What was the starting price of a new 2016 Tesla Model S when it first launched?

    The 2016 Tesla Model S started at $70,000 (base 60 kWh rear-wheel-drive) when released in September 2015. The higher-performance 85 kWh and 90D variants cost more, ranging from $80,000–$100,000 depending on options and trim.

    How much does a used 2016 Tesla Model S cost today?

    A used 2016 Tesla Model S typically ranges from $25,000–$50,000, depending on mileage, battery health, and trim. A well-maintained 60 kWh model with ~50,000 miles may sell for $30,000–$40,000, while higher-end P85D/P90D versions can exceed $45,000.

    What was the price of a 2016 Tesla Model X when it first came out?

    The 2016 Tesla Model X launched in September 2015 with a starting price of $80,000 for the base 60 kWh rear-wheel-drive variant. The 60D AWD and 90D performance models started at $85,000–$95,000, with the top-tier P90D reaching $100,000+.

    How much did a new 2016 Tesla Model X cost at launch?

    At launch, the new 2016 Tesla Model X started at $80,000 for the 60 kWh rear-wheel-drive. The 60D AWD model began at $85,000, and the high-performance P90D dual-motor variant cost $100,000+ before options. Pricing varied slightly by region and configuration.

    What is the average price for a used 2016 Tesla Model X in 2024?

    A used 2016 Tesla Model X now sells for $35,000–$60,000, depending on mileage and condition. A 60D model with ~50,000 miles typically lists for $40,000–$50,000, while the P90D or falcon-wing versions may exceed $55,000. Battery degradation affects resale value.

    What was the original price of the 2016 Tesla Model S P90D?

    The 2016 Tesla Model S P90D (dual-motor AWD performance version) started at $95,000–$100,000 at launch, depending on options. This included the high-performance motor, low rolling-resistance tires, and sport suspension as standard. Pricing could climb to $110,000+ with premium packages.

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