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Pinned May 5, 2017

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Tesla cuts the price on its entry-level Model S by $7,500
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Tesla cuts the price on its entry-level Model S by $7,500

Jon Fingas, @jonfingas

April 17, 2017
 

AOL, Roberto Baldwin

Just because Tesla is ditching the Model S 60 and 60D doesn’t mean that you’ll be paying dramatically more to own the luxury electric sedan. Tesla has cut the price on its current entry-level models, the 75 and 75D, by $5,000. It’s still $1,500 more expensive than the outgoing model at $69,500, but not so much so that you might balk if you were seriously considering the 60 before. It’s certainly a better value if you were already looking at a 75 for the extra range. On top of that, Tesla is sweetening the pot by making key features standard.

All Model S variants now come with the glass roof (previously a $1,500 option) and an automatic rear power liftgate. The 90D has also received a price cut to $87,500, we’d add. And if you bought an upgradeable 60 or 70 car, the bump to a 75kWh battery capacity is cheaper. Unlocking the full battery on the Model S 60 now costs ‘just’ $2,000 versus the previously steep $9,000, while Model S 70 owners just have to spend $500 instead of $3,500.

There are some gotchas in the lineup, however. The price of the 100D and P100D is going up by a few thousand dollars on April 24th to $97,500 and $140,000 respectively (Model X buyers are seeing similar price hikes to $99,500 and $145,000). Also, certain upgrades are now off-limits on some models. You can’t get smart air suspension on the 75 and 75D, for example, while you have to go with a 100 or 100D to get the high amperage charger.

Why all the tweaks? Tesla is likely harmonizing its EV range so that there are clear incentives for people to step up to the Model S instead of ‘settling’ for the Model 3, whose battery capacity will stop at the 75kWh where the Model S starts. The 100 and 100D price hikes are merely a way of balancing things out — Tesla gets to maintain its average selling prices by asking for more from those customers that can most likely afford to pay a bit more. We wouldn’t count on these prices lasting forever, but it’s easy to see them sticking around through the Model 3 launch later this year.

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