Are Investors Overlooking This Major Catalyst for Tesla Stock?
Tesla (NASDAQ: TSLA) rolled out a new version of its driver-assist software over the weekend. While some of the improvements seem to be quite significant based on commentary in YouTube videos posted by owners who received the update, the biggest news about the improved software isn't its features -- it's the software's price hike. The software, which Tesla calls "Full Self-Driving beta" software because the company believes it will eventually enable autonomous driving, will now cost $15,000 in North America beginning Sep. 5. This is $3,000 higher than the software's previous price tag.
Tesla's ability to add both significant value to its software with over-the-air updates and steadily raise the price of the software combine to be a major potential catalyst for the electric car company over the long haul.
Anyone who has read a number of books on investing has likely come across the term "pricing power," or a company's ability to command a high price tag -- even better, a price tag that increases over time -- while still maintaining customer loyalty.
Source Fool.com
