The new model will be called 60D and will have a base price of $75,200. Equipped with a 60kWh battery, the 60D has less torque and a shorter range between charges than the 75D. The auto can be upgraded to 75kWh battery pack as well. That’s $500 more than the retail price difference between the 60D and 75D models.
Advertisement
Tesla just put a cheaper version of its Model X SUV on the market. People go for upgrades which increases the price. The electric auto manufacturer will now target people who can’t afford high-end cars.
Tesla Motors has been looking to enter a wider market, with the highly anticipated Model 3 to carry a price tag of only $35,000. However, those customers will have to wait for a long time to get their hands on the electric auto as they won’t be available until the end of 2017.
Perhaps the cheaper Model X has the same objective as the Model S 60D – to lure buyers away from the upcoming Model 3 in order to deflate the overwhelming demand of the compact sedan.
Tesla has taken all these measures to meet its sales target of 80,000 cars this year.
The changes come after Tesla warned earlier this month it will miss its vehicle delivery target for a second consecutive quarter. The low cost models are being introduced to help the company achieve its sales target. Back then, the company was having a hard time ramping up production of the Model S.
Tesla used to guarantee the resale value of its EVs, but it will do so no longer. The electric auto maker set aside cash pool through which it would buy cars at nearly 50% of the base price after three years. One of the reasons behind this was the automaker’s “Resale Value Guarantee” (RVG) program, which was available via the Tesla financing program.
Tesla valued the total liability created by the resale value guarantee at $1.58 billion as of March 31, according to its latest quarterly filing with the Securities and Exchange Commission, up over 20 percent since the end of 2015.
On Sunday, Musk tweeted that he planned soon to publish part two of his “top secret Tesla masterplan”, prompting widespread speculation that he might reveal more details about a possible Tesla-SolarCity merger.
Advertisement
Investors are keeping a close eye on Tesla’s balance sheet after Chief Executive Elon Musk proposed it acquire solar energy company SolarCity, where he is chairman and a large shareholder.
