Photo: Tesla Motors
Tesla has released a series of new options for the Model S today, and the most notable is the new entry-level model that lowers the base asking price to just $66,000, compared to the previous $70,000.
The most affordable Tesla on the market right now comes with a 60kWh battery pack offering an estimated EPA-rated range of 210 miles (338 km) on a single charge. The trick is that that the actual battery pack is a 75 kWh unit that uses software restrictions to keep the car from accessing its full resources. An upgrade to the 75 model is available upon purchase and costs $8,500, or at any time later on for a price of $9,000. The benefits it brings are 39 extra miles on its maximum range (63 km).
Tesla explained this apparently weird decision based on the requests it had received from potential clients who said they wanted to buy a Tesla, but could not afford the more expensive models. This is how the Model S 60 came to be, offering excellent range, a 130 mph (210 km/h) speed limit, and a 5.5 seconds sprint form zero to 60 mph (97 km/h). There's also an all-wheel-drive 60D option that further improves all the car's specifications, but has a starting price of $71,000.
To some, this trend that Tesla is starting to use may seem weird: why sell a vehicle that is, for all intents and purposes bar a line of code, a Model S 75 for less money? Alright, you might draw some new clients with the price drop, but wouldn't the company lose by selling a superior model disguised as a lesser one?
It seems counter-intuitive, but from a manufacturing point of view, it is actually more efficient to build the same part (the 75 kWh battery pack) for a larger number of products. Plus, who's to say that more than half of the future Model S 60 owners won't upgrade to the 75 kWh option during the next years?
Tesla explained this apparently weird decision based on the requests it had received from potential clients who said they wanted to buy a Tesla, but could not afford the more expensive models. This is how the Model S 60 came to be, offering excellent range, a 130 mph (210 km/h) speed limit, and a 5.5 seconds sprint form zero to 60 mph (97 km/h). There's also an all-wheel-drive 60D option that further improves all the car's specifications, but has a starting price of $71,000.
To some, this trend that Tesla is starting to use may seem weird: why sell a vehicle that is, for all intents and purposes bar a line of code, a Model S 75 for less money? Alright, you might draw some new clients with the price drop, but wouldn't the company lose by selling a superior model disguised as a lesser one?
It seems counter-intuitive, but from a manufacturing point of view, it is actually more efficient to build the same part (the 75 kWh battery pack) for a larger number of products. Plus, who's to say that more than half of the future Model S 60 owners won't upgrade to the 75 kWh option during the next years?
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