March 23, 2017

Tesla backflips (again) and deletes entry-level Model S

20 March 2017, 10:47 | Austin Hogan

Tesla Model 3

Tesla Model 3

Such is the case with the Tesla Model S, which is about to see its lineup pared from four to three battery configurations.

Tesla Inc (NASDAQ:TSLA) received a $368.00 price target from research analysts at Robert W. Baird in a research note issued on Thursday. Back in October, we reported on Tesla reaching the 3 billion electric mile milestone and the company's global fleet has managed to add 500 million in less than 3 months - bringing the total to 3.5 billion in December.

During its conference call on fourth-quarter earnings, Tesla officials said plans for its Model 3 sedan are on track to start limited vehicle production in July.

These are the cheapest Teslas now available, starting at $68,000 before destination and document fees for the Model S 60, and $73,000 for the Model S 60D, which is all-wheel drive and has slightly longer battery range.

Tesla Inc will stop selling the Model S 60 and 60D on April 16, 2017. At a conference call last month after quarterly results, Musk told analysts that while the company didn't need to tap the markets to launch the Model 3, it would be prudent to do so: Without the raise, Tesla would be "very close to the edge", he said.

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The Model 3 is a key element in the company's expansion goals, which include ramping up its production to a rate of half a million vehicles by the end of next year.

Tesla has announced an end to sales of the Model S 60 and 60D variants. Well, color me surprised, but the automaker had it coming since one year ago, when the 60 kWh pack was reintroduced "as a more affordable option".

Just nine months ago, the brand said demand for a cheaper gateway to Model S ownership had forced its hand but now, just nine months down the road, we're being told buyers didn't take to the auto.

In this situation, Maaz Jilani the driver of the model X who had autopilot disengaged, had an SUV two vehicles back get rear-ended and just before he was about to suffer the same fate manages to quickly accelerate forward. It's possible to unlock the additional battery capacity through a paid for over-the-air update, though it seem most buyers find it makes more sense to buy the Model S 75 in the first place.

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