Tesla’s new, enticing offer has a huge catch attached

If you have ever negotiated a price for a car at a dealership, chances are, you were enticed to take a worse price than what you had in mind on the premise of “free” extras.

Free floor mats, free tire rotations, window tints, oil changes, and extended warranties are just some of the services and items that dealers can offer to close a sale, but in the age of electric cars and technology, things are different.

💰💸 Don’t miss the move: SIGN UP for TheStreet’s FREE Daily newsletter 💰💸

Tesla  (TSLA)  EV sales don’t operate using the traditional franchised dealership model; they utilize a direct-to-consumer model that allows people to configure, buy, and even lease their dream Musk mobile without shaking hands with anyone wearing a bowtie and a quarter-zip. 

But as the year 2024 begins to come to a close, Tesla is using an old trick to move more units of one of its more prolific cars; albeit with a huge catch. 

A Tesla SuperCharger charging station is seen in Vaxjo, Sweden, on August 13, 2024. (Photo by Michal Fludra/NurPhoto via Getty Images)

NurPhoto/Getty Images

Tesla: Buy a Model S, get free Supercharging (with limits)

According to the latest data available, Tesla sells the most EVs in the United States, cornering 48.2% of the market, with Q3 2024 sales topping 166,923 units. But while a large majority of its sales consist of the fan-favorite Model 3 and Model Y compact vehicles, the brand’s longest-running model—the Model S—is left in the dust; it sold just 1,669 of them last quarter. 

On December 13, in an effort to boost sales of its flagship sedan, Tesla began offering customers who buy or purchase a new Model S free access to its Supercharger network for the life of the vehicle.

That sounds like a great deal, right? In most locations, Tesla charges by the kilowatt, and on average, owners can expect to pay about $0.25 per kilowatt/hour (or approximately $25 to charge up the Model S’s 100kWh battery pack from 0%), which can add up if they expect to charge often. 

More Business of EVs:

The Kia EV9 is crushing the competitionTesla’s biggest rival has a huge problem no one is talking aboutMove over Ford, this EV might be the new popular police car

But before you hit the ‘Order Now’ button on the Tesla website, know that this deal has some caveats that might make you reconsider fully committing. 

First, the free supercharging offer is tied directly to an owner’s Tesla account and is non-transferrable in any way. The free supercharging offer cannot go to any other Model S or another person, even if ownership of the car is transferred,

If you expect to sell the Model S you bought because of this offer on the used market sometime in the future or pass it on to a family member or friend, the next owner will have to pay up to Supercharge.

Another clause of this Supercharging offer affects those who want to make some money back from their purchase. 

According to Tesla, the Model S offers 38.1 inches of rear legroom, which rivals BMW’s 5-Series, Mercedes-Benz’s E-Class, and even the Toyota Camry in the second row, making it a formidable vehicle for Uber or Lyft drivers.

However, Tesla bars this offer from being used for “vehicles used for commercial purposes,” which means Model Ss destined to be taxis, rideshare cars (like for Uber or Lyft), or delivery vehicles will also have to pay up. 

But while Tesla puts owners on the hook for any applicable Supercharger idle and congestion fees, it also notes that it “reserves the right in its sole discretion to remove the free Supercharging from your vehicle in the event of excessive charging or unpaid fees related to Supercharging.” 

Related: Feds sentence Chinese resident for stealing, selling Tesla IP

Free supercharging, but a more expensive Model S 

This deal’s return comes as Tesla raised the base price of the Model S in the United States by $5,000. 

Under Tesla’s new pricing scheme, the base-model Model S, the Long Range, now costs $79,990 before destination fees. Previously, the Model S Long Range base price was $74,990 before destination fees.

Those who seek to buy the Model S’s 1,064 horsepower, ultra-high-performance Plaid variant will now have to pay $94,990 before destination fees. 

According to Tesla, all Model Ss are subject to a mandatory $1,390 destination fee, and any custom factory-order Model S will also add a $250 order fee.

Tesla, Inc. is traded under TSLA on the NASDAQ. 

Related: The 10 best investing books (according to stock market pros)