Tesla Motors Inc (NASDAQ:TSLA) announced that it will offer two 60 kilowatt-hour versions of Model S at slightly lower prices. The move comes after the electric car manufacturer received 373,000 net reservations for its Model 3 as of May 15. Tesla is expected to start delivering the vehicles in late 2017. The Model 3 has a starting price of $35,000.
In 2012, Tesla offered a 60 kilowatt-hour version of the Model S with a starting price of around $70,000. The company discontinued it last year. According to the company the new versions of the Model S 60 have more capabilities that the discontinued version.
Tesla Model S 60 & Model S60D
Currently, the electric car manufacturer is selling its Model S sedan at a starting price of around $76,000. However, Tesla customers usually pay $100,000 for the vehicle equipped with the biggest battery and premium options.
Today, Tesla said the new Tesla Model S 60 starts at $66,000 and the Model S 60D (all-wheel drive) starts at $71,000.
The prices are before federal or state tax credit incentives. The federal tax credit is $7,500. States have varying tax credit for electric vehicles. Colorado offers the most generous tax credit of $5,000.
The Tesla Model S60 and Model S 60D are integrated with an Autopilot feature and come with updated front fascia design. The vehicles offer a zero-to-60 acceleration in 5.5 seconds or less. Both will have a range of more than 200 miles per chares.
The electric car manufacturer said both Model S 60 vehicles will have a battery pack with a 75 kilowatt-hour capacity, but will be limited to a 60 kilowatt-hour capacity. Tesla also stated that consumers will have the option to obtain a software upgrade to allow their cars to 75 kilowatt-hour capacity.
Tesla plans to produces around 80,000 to 90,000 electric cars this year. The company said it can produce as much as 500,000 units by 2018. Industry experts previously stated that the company’s production goals are difficult to achieve.
Tesla expanding in addressable market
RBC Capital markets analysts Joseph Spak, commented, “Bears may gravitate to the view that higher-end luxury demand is waning. A more neutral to positive view is that Tesla is expanding their addressable market.”