Tesla drops the price of the Model S by $7,500

resource from: Tesla Motors   

By Eric Walz

As Tesla gears up for the much anticipated launch of the Model 3, the electric automobile maker announced that they have made significant changes in the pricing of their Model S and X options. Effective today, April 17 (PDT), Tesla has discontinued the Model S with 60 kWh battery and dropped the price on the entry level Model S by $7,500. The starting price of the Model S is now $69,500, down from $77,000.

Accelerate the Adoption of Electric Vehicles

In statement released by Tesla last month, Tesla acknowledged that it introduced the Model S with a 60 kWh battery as a more affordable option to accelerate the adoption of electric vehicles. Tesla also stated that most customers ended up buying an equivalent to the Model S 75kWh anyway. "To simplify the ordering process for our customers, we will be removing the 60 kWh option from our lineup." the company wrote.

The hardware of the Model S60 was the same as the 75 kWh car anyway, Tesla simply limited the car's battery output to 60 kWh using onboard software. This will no longer be the case, all future Tesla Model S cars will have a minimum battery output of 75 kWh.  According to Tesla, "Any 60 kWh Model S will have the ability to upgrade their battery to 75 kWh via an over the air update."

Extended Range

The 75 kWh upgrade will give current Model S60 kWh owners an extended range of 39 miles, while the 5 kWh upgrade adds about 19 miles of range. Tesla Model S60 and S70 owners will also receive a new badge for the rear of their vehicle after the upgrade.

More Options

Although the price of the Model S with the 75 kWh battery has been reduced, an automatic rear power lift gate and a glass roof are both now standard equipment. Other options, such as the smart air suspension will no longer be available on the Model S75, although it will be available on other higher models. Additionally, a high amperage (72 amp) charger which offers faster charging has been added to the 100 kWh Model S models.

Lower Upgrade Costs

Current Model S60 owners can update the battery output to 75 kWh in their vehicles for just $2000, which is $7,000 less the initial cost $9,000. Current Model S70 owners are being offered a battery upgrade of 5 kWh for just $500, which is an 85% less than the initial price of $3,500. With Tesla's new pricing, the base price of a Model S75 is only $1500 more than the phased out Model S60.

Price Changes for Other Models

Although the price has dropped $7,500 on the Model S, Tesla's other high performance models will see slight price increases, which take effect on April, 24, 2017.

Tesla Price Changes

Model S 100D:  $95,000 to $97,500

Model S P100D:  $134,500 to $140,000

Model X 100D: $98,500 to $99,500

Model X P100D: $135,500 to $145,000

Tesla will see their revenue increase if current Tesla owners opt for the upgrades, and Tesla expects to sell a lot more cars with the new lower base price of the Model S.

resource from: Tesla Motors

Eric Walz

Originally hailing from New Jersey, Eric is a automotive & technology reporter covering the high-tech industry here in Silicon Valley. He has over 15 years of automotive experience and a bachelors degree in computer science. These skills, combined with technical writing and news reporting, allows him to fully understand and identify new and innovative technologies in the auto industry and beyond. He has worked at Uber on self-driving cars and as a technical writer, helping people to understand and work with technology.