Shortly after announcing that Tesla plans to cut its relatively more affordable Model S 60 and 60D from its lineup, the company revealed that it will also reduce the price of its new entry-level models, the 75 and 75D, by $5,000 to make up the price difference. It’s still $1,500 more than the previous model, but given that it retails for almost $70,000, that might not be a major issue for potential buyers.
Those aren’t the only Model S variants to receive a price cut. The 90D’s base price is being cut from $89,500 to $87,500. If you want a car packed with more features, however, there’s bad news: the 100D and P100D are seeing a several thousand dollar price hike, as are Model X variants. There are also certain upgrades which are no longer available for the “entry level” cars, including smart air suspension on the 75 and 75D. And anyone interested in a high-amperage charger will have to shell out for the 100 or 100D.
It may seem strange for the company to make such dramatic changes to its lineup, but it makes sense when you consider the launch of the $35,000 Model 3 later this year. The company is cutting out the products that will overlap with the Model 3’s functionality – the new car’s battery capacity stops at 75kWh, so anyone who wants a more powerful vehicle will have an incentive to upgrade.
The higher prices at the top of Tesla’s range will help make up for the low cost of the Model 3, allowing the company’s average prices to remain the same. While this might be a bit frustrating for anyone interested in a 100D, overall it will help make electric cars more affordable for the average consumer. Hopefully this will result in more Tesla vehicles on the street overall.