Tesla Launches Two New Models Priced Lower than the S

Last Thursday, Tesla Motors announced that it would be creating two new, lower-priced versions of the Model S that could hit American roads by July of this year. The electric car and tech mogul stated that it hopes to make its vehicles more financially acceptable to more people. 

The Mosel S 60 will cost around $66,000 and the Model S 60 D will cost closer to $71,000. Both have a slightly reduced range compared to the original Model S, which was released in 2012 and costs somewhere around $76,000. 

model s3In a recent statement, Tesla put forward that owners of electric cars do save on fuel costs and that the effective price of ownership for the new Model S 60 was closer to $50,000. 

According to Tesla, the new models will be available to the public within the next six weeks, a standard lead time for the company. Individuals who place orders today can receive their cars as early as the month of July. 

The cars will have a range of 200 miles per charge and a maximum speed of 130 miles per hour. Both new models will be sold along with battery packs that have 75 kilowatt-hour capacities. In line with Tesla’s new and unique business model, the batteries will only have 60 kilowatt-hour capacities unless customers decide to pay up and unlock the battery’s full capacity. 

The decision to make hardware only fully utilizable by high-paying customers may seem like somewhat of a dick move, but Tesla has explained that its actually the company that is forced to pay extra for the model; after all, either way they’re forced to make the same hardware. It’s the Tesla customers that are given a less expensive option for the same hardware, yet another example of the electric car mogul’s attempts to make its expensive products more widely accessible to the general population. 

According to Tesla, the company plans to produce somewhere between 80,000 and 90,000 vehicles in 2016 and by 2018 hopes to launch that number up to 500,000. The company has stated that it expects most of these cars to be Model S cars. 

model s4Last year, Tesla also announced plans to create a more affordable car called the Model 3. The Model 3 retails for an affordable $35,000 and is projected to hit the market in 2017. The Model 3 has sent shock waves through Tesla and the electric car industry in general because of its immense popularity; the company has received just under 400,000 pre-orders for the car, prompting many experts to expect that Tesla will not be able to produce all the vehicles by the projected 2017 deadline. 

It’s not a bad prediction considering Tesla is still making the factories meant to make the cars. Electric vehicles and their batteries have never been made in bulk the way the 400,000 pre orders will call for, but Tesla CEO Musk has expressed confidence that bulk battery production will bring down the price of electric cars and play an instrumental role in making the technology inexpensive enough to enter the mainstream. 

Tesla shares recently plummeted as a result of Tesla’s offer to purchase Solar City. 

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