Tesla To Discontinue Cheapest Version Of Model S (Rear-Wheel Drive) In A Few Days

4 weeks ago by Steven Loveday 15

Tesla Model S

Tesla Model S (Image Credit: Tesla)

As Tesla continues to streamline its lineup, another vehicle will enjoy its last few days in existence.

We noticed some uninformed reports/headlines stating that Tesla is considering discontinuing the Model S. This is surely not true, however, not unlike past lineup tweaks, the automaker is dropping the least expensive Model S from its offerings. In fact, as of the time of press, the Tesla Model S 75 appears to have disappeared from the automaker’s design studio. Although, if you click on the 75D, it still brings up the 75 as an alternative. This won’t last long however, so custom orders for the S 75 need to be placed as soon as possible.

Tesla Model S

Inside the Tesla Model S (Image Credit: Tesla)

Keep in mind that this is not the same as an OEM eliminating a vehicle from its lineup. It would be more comparable to the shifting or elimination of a trim, which generally happens during refresh or redesign model years. Since Tesla doesn’t rely on model years, and its products are ever-changing due to hardware improvements and over-the-air software updates, we can expect that the automaker’s lineup shifting strategy is here to stay.

Electric vehicles are dropping in cost due mostly to the declining price of batteries. Tesla’s vehicles have become less expensive over time and this will continue to happen. These periodic shifts allow the company to add new top-of-the-line models with better performance and increased range and also bump everything else up from the bottom. Now that Tesla has (somewhat) released its lowest price vehicle, the Tesla Model 3, there’s some wiggle room to eliminate the cheapest Model S. This also leaves the Tesla Model 3 as the only model available with rear-wheel drive.

The Model S 75 is rear-wheel drive only and starts at $69,500 in the U.S. The lowest-priced option following the automaker’s shift will be the Model S 75D, which is all-wheel drive and starts at $74,500. According to Electrek, Tesla will officially drop the model this coming Sunday, September 24. This doesn’t come as a surprise since the quarter is nearing an end, and could help the automaker with sales, by pushing people to quickly place orders for the disappearing vehicle. Plus, for those using the Tesla referral program, it remains the cheapest way to get to get free Supercharger access.

Source: Electrek

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15 responses to "Tesla To Discontinue Cheapest Version Of Model S (Rear-Wheel Drive) In A Few Days"

  1. Indeed it has been rumored for some time, so this is most likely for real now.

    Unless Tesla lowers the price of AWD after the RWD disappearance, which wouldn’t make much sense with their intentions to increase the gap between the Model 3 and Model S, this is possibly the last chance to make a real bargain on a Model S. πŸ˜‰

    1. Viktor says:

      There have been reports here in Sweden of costumers that have order a Model S 75D have seen a price reduction on nearly the same amount as the difference between 75 and 75D. If Tesla do this it mean that the price difference between Model 3 and Model S will be little more understandable then it’s now.

  2. Tom says:

    Makes sense.

  3. unlucky says:

    It’s a little unfortunate because the non-Ds are quieter than the Ds. But given the price of the cars even at the base price it’s probably not any kind of financial burden.

  4. bro1999 says:

    Is the timing of this announcement purely coincidental that it happens to come at the end of a quarter? *raises eyebrow*

    1. (βŒβ– _β– ) Trollnonymous says:

      It’s done so the TM3 doesn’t cannibalize the TMS sales……maybe? Would make sense as the high end TM3 may get pretty close.

      Just my Trollstimate.

      1. Pushmi-Pullyu says:

        You’re not the only one to suggest this. The same speculation appears in at least one other (offsite) article on this subject.

        But if Tesla is trying to prop up sales of the Model S — by, among other things. “anti-selling” the TM3 in favor of the MS — then eliminating the lowest MS trim level seems a rather odd way to go about it.

        My guess is that Tesla has decided to devote more and more of its production capacity to the Model 3 line, and that this made it necessary to cut back a bit on MS production… or rather, a bit more, since it appears the changeover had already necessitated cutting back somewhat… so Tesla decided to cut off the lowest (and almost certainly lowest profit margin) trim level.

        Just my guess, of course.

  5. ModernMarvelFan says:

    Just means that it will create some room between the lowest priced Model S and most expensive Model 3 (potentially with AWD).

    It is another way to shift some potential high end Model 3 buyers into a Model S.

    1. BenG says:

      I agree that this move helps differentiate the Model S from the 3, but I disagree that there will be any room between the lowest priced S and the most expensive 3.

      The big-battery Dual Motor Performance Model 3 with full options will undoubtably be more expensive than the most affordable Model S, in my opinion. Just like you can spend more on a BMW M3 than on many 5-series BMWs.

      The Model 3 and S with overlapping prices will be quite different cars though and appeal to different buyers.

      1. James says:

        +1 My thoughts exactly. Now I don’t need to write that post.

        I can’t wait until there is a TMY and PTM3D, or whatever they may call it.

        There are many ways to dissect what customers will be pirated away from by another model in the lineup. It just gets tedious and unnecessary as hatch buyers will get a TMY and a performance hungry buyer has that option of a decked out compact sized speedy sedan. A 2-3 door coupe may spring up eventually.

        Choices are obviously good, but today they are still slim in EVdom. Every manufacturer develops overlaps as they cater to more and more selective categories. The main thing is, they don’t lose that customer to another brand.

        A mature Tesla will make trucks and a Roadster, possibly convertible versions of sedans, commercial vans, trucks and military vehicles.

        In time, the real, REAL affordable Tesla can be made. A compact or subcompact sedan in the $20,000 range. At that juncture in time Tesla may spin off new brands so that the Tesla nameplate stays associated with the premium segment. There are many sound marketing reasons why premium brands won’t sell economy/budget cars. They need a premium image to retain market share.

  6. notting says:

    So does Tesla stop taking part at the German EV incentitive program? They made a cheaper Model S version especially for that.
    One of the incentitive rules is, that the base vehicle without taxes must cost <=60kEUR = 71.400EUR incl. VAT. The base price of that cheapest model is 67.970EUR…

    notting

  7. Kosh says:

    I actually got a call from Tesla yesterday (while I was out hunting squirrels !). They had called to let me know that the S75 was about to be discontinued and if I’d be interested in that or still holding out for the Model 3. I told them we still wanted the model 3.

    And yes, I still got the squirrel I was stalking….he was stupid enough to stand still the entire conversation.

  8. Hauer says:

    SO they are shutting DOWN a path to reduce the TM3 backlog.

    1. Or, the $5,000 More Expensive 75D, will become only $3,000 More Expensive (Drop by $2,000), shortly?

  9. JR says:

    Tesla need to make greater distance between the S, X and 3
    S X, 2 motor standard and 100 kwh battery standard,and a 120 kwh option and redesign som of the interior on the S, it really need it, i could make a long list!
    But ofcource 1 proity get the 3 to market in big volume

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