Tesla Revs up Price, Power, Range of Model S

— -- Everything is getting a boost in Tesla's latest update of its Model S sedan, including the electric car's range, power and yes -- its price.

Called the 70D, the new all-wheel-drive Model S may give some buyers sticker shock with a starting price of $75,000 -- that's 7 percent more than the starting price of the old Model S, called the 60.

What buyers will get is a more powerful car with an increased 250-mile range at 65 mph, according to Tesla. The 70D can get from 0-60 miles per hour in 5.2 seconds, according to Tesla, shaving off around seven tenths of one second.

"They're raising the price but they're also raising the range and that is what electric vehicle people are so vitally concerned about," Jack Nerad, executive market analyst at Kelley Blue Book, told ABC News. "I think the new technology trumps the price increase, so overall it's a win."

Using a $7,500 tax credit, Tesla CEO Elon Musk pointed out the price of the car would drop to $67,500, with further reductions in some states that tack on additional credits, the Associated Press reported.

Factoring in fuel savings, the cost of owning a Model S 70D comes to $55,000 over the course of five years, the average time people own a new car, putting it around the same price point as mainstream luxury vehicles that run on fuel, according to a Tesla analysis.

Nerad said it's a smart move for Tesla as it aims to prove that it can compete with mainstream luxury car makers.

"I think what they [Tesla] have to worry about is not being the flavor of the month," Nerad said. "They had a nice run, some very cool stuff in terms of the technology, interior and zero emissions, but when the product ages a bit, those are the telling years for any car company."

"These are the test years for Tesla," he said.