Tesla has dropped the price on the Model S 75 by $7,500 — to $69,500, from $77,000 — seemingly in anticipation of the end of federal tax credits in the US. What I mean by that is that Tesla is rapidly approaching the 200,000 electric vehicles sold mark, which will start the beginning of the phaseout of the federal tax credit (for the brand).
Interestingly, accompanying the drop in price was a reduction in the number of options available, but also an increase in the equipment that comes standard with the model. So, Tesla is continuing to simplify its production as part of its transition to Model 3 mass production, it would seem.
This news follows earlier news that Tesla was discontinuing the Model S 60 — which despite the name was actually equipped with a 75 kilowatt-hour (kWh) battery pack just as the Model S 75 is, and was simply software limited to the use of 60 kWh.
Presumably, part of the reason for the price reduction is that battery pack production costs are expected to be reduced as a result of the Gigafactory coming online — thus giving the company more leeway as regards pricing.
In related news, a Phil King tweeted to Elon last night: “I posted in the tesla forum that the 60->75kHw upgrade was discounted to $2k. >10 surprised people bought so far! Needs a tweet?” Elon quickly responded, “Tesla will soon be offering a compelling means of upgrading a 60 to a 75.”
Tesla will soon be offering a compelling means of upgrading a 60 to a 75
— Elon Musk (@elonmusk) April 17, 2017
As Elon confirmed afterward (but with a slight slip not worth repeating), if someone has a software-limited Tesla Model S that has a 75 kWh battery but is “only a 60 kWh Model S,” they’ll be able to upgrade it for $2,000.
Back to the new pricing on a new 75 kWh Model S as well as upgrade options, Autoblog provides more: “The 75D now costs $74,500. Tesla also dropped the price on the 90D to $87,500. … Additionally, the glass roof and automatic rear liftgate are standard equipment on the entry-level Model S. Gone, though, from the options sheet for the Model S 75 are the Smart Air Suspension and 72-amp onboard charger. You’ll have to go upscale for those, with the suspension upgrade available starting in the Model S 90D, and the high-amp charger included in the 100D.
“If you already own a 60- or 70-kWh version of the Model S, and want to upgrade to 75-kWh capacity via an over-the-air upgrade, that option is now less expensive, too. The range boost is $2,000 for the 60 (down from $9,000), and just $500 for the 70 (down from $3,500).”
I guess that Model S 60 buyers who decided to wait on the battery pack upgrade were right to do so, from a financial point of view anyway.
Similar upgrade price changes have been implemented with the Model X as well.
In conjunction with these price drops, though, Tesla will reportedly be raising the price of the Model S 100 series — with the price of the Model S 100D climbing to $97,500 and the price of the Model S P100D climbing to $140,000 (from $134,500).