40kwh Model S canceled

[FalconNinetyD]

So Tesla is saying it's more cost effective for them to put the larger battery in and lose some money there, compared to the cost of engineering and certifying a new battery pack?

Long term degradation will definitely be interesting. After a few years, will the car be limited to a percentage of the battery or miles?

 

[ohaq]

Elon Musk ‏said, "To be clear, Tesla is in California, so it is not April Fool's yet! Also, some may differ, but imo the Tues news is arguably more important."

The idea is not to piss off the people who paid $10k extra for the 60kWh pack and $2k for supercharging. You essentially get a free boost to your resale value since your car is now easily upgradeable to one level higher and you also get a boost in performance and longevity of the pack. There's really nothing to complain about if you reserved a 40kWh version.

The interesting thing is that we now know the price of the 40kWh version is enough to cover the cost of the extra 20kWh worth of batteries.

Side point, if this was an April fools joke this would be one heck of an April fools joke.

 

[stopcrazypp]

WIth the 40s does it mean that the battery would never be fully charged? What they should do is that you get the full range but after 160 miles the car max speed is only 10-20 mph so that we can get to a charging station, instead of getting it towed away.

Yep, I suspect that is probably how they will implement it (although they likely will also have some extra reserve in the bottom too). It should help battery life significantly since you never are at 100% SOC.

 

[Trnsl8r]

...
Side point, if this was an April fools joke this would be one heck of an April fools joke.

The interesting thing is that we now know the price of the 40kWh version is enough to cover the cost of the extra 20kWh worth of batteries.

We don't know that for sure. They may just take that 4% of orders and biting a bullet as the idea of 40kwh gets buried. (Although it's still available in the design center... hmm.)

April fools... don't know, it's still two hours away in California. And they wouldn't do that. ... Would they? (No, they wouldn't. They would have made up some goofy s--t about induction charging or something.

 

[markwj]

Reminds me of an 'upgrade' to a Control Data mainframe back in the 80s. The facility I worked for paid GBP1million for the performance upgrade, which meant an engineer removing a single 'slug' circuit board to double system performance.

US$10k diff, at 25% margin is $7.5k cost to Tesla, which they now need to eat for these 4% of cars. How many cars? 4% of 20,000 reservations? 800 x $7.5k is $6million. I can see developing and supporting a 40kWh option costing more than that in R&D.

But, the downside is that this is no longer a 'from $50k' car, but now 'from $60k' (after incentive).

 

[Lyon]

Frankly, this isn't going to impact all that many cars (only the 40kWh who've ordered by now, right?)

Also, what I've seen so far is that Tesla is still figuring things out but when they make a decision like this they figure out some way to, if not make it right, mitigate the hurt feelings.

 

[Banahogg]

IMO, the most interesting part of this is that it means that all Model S's are physically capable of supercharging.

 

[stopcrazypp]

We don't know that for sure. They may just take that 4% of orders and biting a bullet as the idea of 40kwh gets buried. (Although it's still available in the design center... hmm.)

Yes, you are right. It really depends on if they continue to offer it. If they completely discontinue the model then it may mean they are taking a loss. I kind of have mixed feelings about this though. Sure, right now there are few 40kWh orders, but can we guarantee that will be the case half a year or a year later? Although I suppose it's entirely possible we may see a price drop if demand really gets lower and battery prices are cheaper.

 

[jdevo2004]

Now we know the answer to the thread about which model will retain its value best. The software limited 40kwh model.

 

[wts13]

FWIW, I ordered a 60kw with Supercharging.

I'll only be irritated if future 60kw buyers get free Supercharging, while previous buyers paid $2000.

I'll also be a bit peeved if someone hacks the 40kw software limit at some point

 

[pilotSteve]

Tesla web site is now "down for maintenance". I'll bet the 40kW version is removed by morning....

I think Tesla is treating 40kW customers very fairly and they should have nothing to complain about IMO. They could have 'lied' about how they chose to implement the 40 (buy installing a 60 battery with different firmware) but they are being up front about what they did. I give them kidos for taking the high road.

Great news about the SC hardware so that 60s that chose to not buy supercharging can change their minds and purchase later for $2k. Again this is the high road. Well done Tesla!

 

[vfx]

Software limiting is common. Laser copiers, microwaves, and all sorts of appliances have exactly the same components.
There is a rumor that all 2.5s Roadsters have Sport capability but if you did not pay the extra then you get a non-sport. Not sure if that's true because it seems they would offer upgrades to all the CPO cars. Now that the cars are discontinued it would be a moneymaker.

 

[jomo25]

I just got back from a day trip to LA for family reasons. And just settling in and I see this. I guess I still suspect its a 4/1-related event.

 

[nanimac]

Tesla web site is now "down for maintenance". I'll bet the 40kW version is removed by morning....

I think Tesla is treating 40kW customers very fairly and they should have nothing to complain about IMO. They could have 'lied' about how they chose to implement the 40 (buy installing a 60 battery with different firmware) but they are being up front about what they did. I give them kidos for taking the high road.

Great news about the SC hardware so that 60s that chose to not buy supercharging can change their minds and purchase later for $2k. Again this is the high road. Well done Tesla!

I'm one of the 4% holding a 40kwh res and actually called Tesla last week to see if I can upgrade to a 60kwh just so i could get the car sooner. Am now thinking that my car will be delivered sooner and am also betting that Tesla will let me upgrade if I still wanted too. Will be getting the performance boost of a 60kwh but not the range if i keep the 40. Not sure if I should upgrade now. Guess it depends on how much the software change would cost to upgrade down the road.

 

[mpottinger]

If it is true, it is an interesting development. I wonder if this relates to Elon's Twitter last week about putting his money where his mouth is. Equip the cars with capabilities the consumer hasn't paid for yet based on your confidence that they will like the cars and will want to upgrade. I didn't order supercharging because I don't think it's coming to Colorado any time soon. However, if they do start installing here, I'll pay the $$ and get the upgrade. Brilliant.

 

[stopcrazypp]

I wonder if this relates to Elon's Twitter last week about putting his money where his mouth is.

On twitter he said this announcement is different than the one that will come on Tuesday. He said that one is more major.

 

[vfx]

For half a decade Tesla said they would have a $50k dollar car. Looks like they just pushed that date back.

 

[jomo25]

Going thru his tweet, he only refers to the profitability, then states its not 4/1 yet in CA, then says the Tues news is "bigger". Perhaps he still means the 60/SC capabilities as the bigger news on Tuesday? Dunno. Stunned to an extent.

- - - Updated - - -

For half a decade Tesla said they would have a $50k dollar car. Looks like they just pushed that date back.

Wait, why is that? You can still buy a 40 for the same price. It's justa discounted/software limited 60. Am I reading it wrong?

 

[ohmslaw]

It's pretty clear that he means he has a different announcement than this and he's making it on tuesday, and that the different analysis is arguably bigger. He links to the whole announcement, not just a profitability announcement.

 

[stopcrazypp]

Wait, why is that? You can still buy a 40 for the same price. It's justa discounted/software limited 60. Am I reading it wrong?

You might not be able to do so after today. As I said, it depends on if they are taking a loss (or close to it) on the 40kWh version given this change. If they are, then they will obviously stop offering it for sale and just address the 4% that have ordered so far.