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Here's Why Tesla's Model S Can Cause The Company's Downfall

By Cyril , Mar 21, 2017 06:10 AM EDT
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Tesla Motors: Five facts you didn't know

Due to low demand for the 60 and 60D cars, renowned car maker maker Tesla has recently announced that it will halt the production of the entry-level 60kWh battery versions of its Model S saloon next month, as part of a bid to simplify the Model S range. By doing so, the company said that the move would also enable them to separate its more cost-effective cars with its more premium ones given the fact that the production starts to ramp up for the highly anticipated Model 3 sedan. It was found that Tesla customers and potential buyers have already been notified that the Model S 60 and 60D models will be discontinued on 17 April.

Discontinuation Of Tesla Model S

According to Road And Track, the Model S 60 mainly served as a basement-level trim for those that are too impatient to wait until the release of the more affordable Model 3. However, since the Model 3 is about to be debuted, it might be that Tesla thinks the 60 has served its purpose, and needs to make room for the highly anticipated model. In their email sent to their customers, the company said that they have initially introduced the Model S 60 kWh battery as a more affordable option to accelerate the adoption of electric vehicles, however, most customers ended up buying an equivalent to the Model S 75kWh, which led them to finally decide to remove the 60 kWh option from their lineup.

Per Cars UK, since the 60 models and 70 models are the same under the skin, with just software making the 60 models lower powered, the company reveals that there would be no savings for Tesla production but just a lower sale price. That said, if buyers would really insist on purchasing a Model S 60 or 60D, the company explains that they only have until 16 April 2017 and they could eventually upgrade it alter to a 75, though it would also mean an additional cost. Furthermore, it was found that after the said deadline, the starting price of the Model S will shoot up to the mid-$70,000s before tax credits.

Over-all, experts said that potential Tesla buyers will not be bothered by  the 60's cancellation. Additionally, by discontinuing the 60-kWh battery, the Model S allegedly follows the lead of the Model X, which is said to have currently started off with the 75-kWh option. Ultimately, it was found that Model 3's range will be similar to the 60 and 60D.

               

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