Tesla Quits Manufacturing Another Version on its Model S
Over this past weekend, Tesla stopped manufacturing yet another variant of its top-of-the-tier Model S. This is the second time the electric car company has made this decision over the last six months. Here’s everything you need to know.
On Sunday September 24, 2017 Tesla stopped production on its Model S 75. The car had a starting price point of $69,500 and was the cheapest Model S available after Tesla cut its Model S 60 and 60D earlier this year. Tesla will sell the rest of its inventory for their Model S 75, and once it’s gone, it’s gone forever. If you were looking at the 75 KWh version, I would suggest to hurry.
This move now makes Tesla’s Model S 75D the cheapest Model S available, starting at $74,500. Because this is a dual motor machine (one on each axle), the only rear-wheel drive car that Tesla will sell will be the Model 3, specifically an entry-level model.
These price re-arrangements are nothing new for the company, but why do it? Well, there are several reasons. I am sure this move clears some room on the production floor to make room for Model 3s, as production is beginning to ramp up. Musk has also been concerned about the growing confusion between the Model 3 and Model S. A bigger price gap in-between the two might help to show better distinction between the two. Yes, the Model 3 will START at $35,000, but after upgrade options is could be closer to $45,000-50,000. With the new higher price tag on the Model S, starting at $74,500, it is evident the two cars are on different levels.
It will be interesting to see how this progresses as time moves on. Musk and the team at Tesla may end up cutting more and more variants of its Model S to make production simpler and to separate it into a class of its own. Who knows, we will just have to wait and see how Model 3 is received in the general population.