Last month, Tesla cut the base price of its Model S sedan to US$66,000. The cheaper version will come with the same 75 kWh battery pack, which can be fully unlocked at any time by paying $9,500.
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Base prices for the Model S and Model X, after tax credits, are comparable to those of mid-range German luxury vehicles.
The Model X remains as powerful as before, mainly because it is actually still fitted with a 75kWh battery; the sole difference being that only 60kWh is accessible which affords it 200 miles of range instead of 237 miles.
Simultaneously, Tesla announced a cheaper version of the Model X crossover. This idea of upgradability is something Tesla has pushed hard with all of its cars – you can add nearly any of the company’s famous software features (like Autopilot, or Bioweapon Defense Mode) after the fact, though they do cost more this way.
The Model X 60D is the latest product of that initiative.
Earlier this month, Tesla said it missed its sales targets for the second consecutive quarter, and is on track to miss its full-year goal of 80,000-90,000 vehicles. Production of these models won’t take a lot of time as the hardware is the same. The program, which ended on July 1, would free up cash for the company.
The program, begun in 2013, was meant to help Tesla control its secondary market and reassure buyers purchasing vehicles using its novel technology that resale values wouldn’t drop substantially.
Only a very small number of Model S sedans are sold through used vehicle auctions, and so far the vehicles “seem to be going for a pretty strong premium in the second hand market”, said Patrick Min, an analyst with Automotive Lease Guide. According to Reuters, Tesla could pay as much as $192.4 million for 4,209 vehicles to cover its resale guarantees in the coming year, which makes up to $45,711 per auto. As of Mar 31, the liability due to the resale value guarantee was $1.58 billion.
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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.
