Tesla Discontinues Cheapest Models Ahead of Model 3 Launch
Tesla reportedly sent emails to customers last week informing that the company has set April 16 as the last day that the base 60 kilowatt-hour Model S will be available for orders. The Model S is the lowest-price model of the electric sedan currently available, starting at $68,000.
Electrek has confirmed with the company that the Model S 60 and Model S 60D will only be available for orders until April 16. The most affordable models before the Model 3, these 60 kWh units start at $68,000 and buyers have the option to upgrade to 75 kWh. Tesla explained that it has decided to cut this tier off its selection because of a need to streamline the ordering process.
In the email, the company explained that the reason for the change is to simplify the ordering process, and let the customers know that the company is doing away with the 60 kWh Model S version. Any existing 60 kWh models can still be upgraded to 75 kWh even after April 16, according to The Verge.
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"Customers who still want the opportunity to own a 60 kWh Model S will have until April 16, 2017 to place their order. Any 60 kWh Model S will have the ability to upgrade their battery to 75 kWh via an over the air update," Tesla said in its email to clients.
As the feature from The Motley Fool explains, the upcoming Model 3 is a good reason to discontinue the Model S 60 and Model S 60D. With Tesla having set a schedule for production of the $35,000 Model 3 to start in July, a streamlined set of choices for car buyers will give them the chance to make a clear choice on the Tesla car that they are going to buy.
For example, a Model 3, while it starts off at $35,000 in its most basic configuration, could have options and upgrades added to it that can take it close to the $68,000 starting price for the Model S. The company could be looking to create a clearer distinction between the affordable Model 3 and the more upscale models, and removing the Model S in between will go a long way to help make it clear which units are marketed as luxury sedans.
