Tesla, the luxury electric car manufacturer, has announced their plans in a monthly newsletter, to increase the price of the base Model S 60 by $2,000. Although it isn’t a drastic increase when compared to its original price, it will give people a pause when considering what version of the Model S to buy.
The price hike will be applied starting on November 22nd. This will make the Model S 60 cost $68,000 in total. Considering it is a luxury car which not many people can afford and those who will won’t give much thought about the price hike.
Although the company doesn’t hope to dissuade any of the potential buyers of the Model S 60, some people will see that it will make much more sense to buy the Model S 75 which costs only $6,500 more.The Model S 60 offers 60 kWh battery with a range of 215-miles while the S 75 has a range of 259 miles and a battery capacity of 75 kWh.
Nonetheless, it’s somewhat of a strange move from Tesla. The company recently relaunched both the Model S 60 and the S 60D in an attempt to boost their sales by offering potential Tesla customers a lower-priced option. The company’s bid was successful as they made a profit for the first time in two years during the last financial quarter and saw a 59 percent increase in sales over the same period last year.
The increased price has to do with Tesla’s decision to incorporate optional hardware as well as software in all the versions of their car. For example, the Model S 60 and 60D actually come with a 75hWh battery. Tesla advertises the cars as having only 60 kWh while the rest are locked behind the software. By including the same hardware in all versions, the production process is more efficient and the company that potential customers who buy a version will eventually upgrade by paying an additional $9,000 fee.
Tesla needs to make up for this shortfall in costs by increasing the price of the base model. The company also announced that it will remove the free supercharging perk for models sold after December 31st, in order to save more money.
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