Tesla, Inc. Slashes the Price of Model S

Geronimo Vena
Aprile 18, 2017

Here's a closer look at the aggressive pricing move, and what it might mean for Tesla's business.

The inclusion of the glass roof seems like another effort to streamline Tesla's product line, since the Model 3 is also supposed to come standard with an all-glass roof.

Tesla also reduced the price to "unlock" additional battery capacity in some of its older models.

To this point, Elon Musk took to Twitter this past January and said Tesla models will undergo substantial revisions every 12 to 18 months.

Tesla dropped the price on their entry-level Model S, with a $7,500 discount to the 75kWh version, which now starts at $69,500.

The Model S 75 isn't the only vehicle seeing a price reduction, CNET reports that the Model S 90D was reduced $2,000 to $87,500. So go ahead, or keep waiting for Model 3 to arrive.

When Tesla wants to change pricing or available features for its electric offerings in its online configurator, it often does so quietly. Because most customers ended up ordering the equivalent to a 75-kWh model, the company made the decision to cut the 60-kWh version and thereby simplify the ordering process. The Model S with the 75 kWh battery, for instance, has significantly more range than the 60 kWh one did.

The company has confirmed that next week it's going to be implementing slight price increases to its higher end 100D and P100D models but it expects the average selling price to remain nearly exactly the same. Additionally, The Verge reports that the Model X versions dropped between $3,000 and $5,000. We expect our total average selling price to remain nearly exactly the same.

So, what do you do if you just recently ordered a 60kWh Model S? The base P100D will also see an increase, $5,500 for the S, and $9,500 for the X. Those increases won't occur until April 24. The most dramatic price increase, on the other hand, is on the Model X P100D, which is going from $135,500 to $145,000.

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