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elon musk, please bring back the 40kwh car!!

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Tesla does make a 40kwh car, it's called tge Toyota Ev-Rav4, and there are great deals available on them.

It's really a shame its not available outside of CA. By all accounts, its the best value in EV's right now. I have heard of them going for as low at 30k after all tax credits are taken into account. Unfortunately, even if you export one into a free state, Toyota will not honor warranty claims or provide service unless you bring it back to Cali. Knowing the Rav4EV's questionable reliability (I have heard horror stories about them), buying one without warranty support is a risk most people simply cant take.
 
The reason that Tesla decided not to make the "real" 40 kWh car is the extra cost and small interests. Unlike the 60 kWh battery pack, which is the same as the 85 kWh pack except some cells are replaced with dummy cells, the 40 kWh battery pack uses different battery cells and have different total weight. It needs to go through costly and time consuming certification before it can go into production. I imagine Tesla might be willing to it if there are thousands of orders for it but as the way thing goes now this will not happen.
 
@brianman thanks for finding better words for my thoughts. I agree.

@CarlK the 60kWh actually has fewer and possibly other cells than the 85kWh battery pack. No dummy cells, but two empty module bays - 14 instead of 16 modules. And it weighs som 200lbs less.

You already discussed that making a dedicated 40kWh pack is not a desirable option for Tesla. I agree.
What they did with the software limited 40kWh cars having 60kWh packs was a great deal for these that actually got such a car. Not so much for Tesla, since they absorbed the higher cost. I doubt they want to repeat that, even if cell costs drop further. BTW public reception of a product that is software limited in its capability is a two-sided thing in public perception.
 
I maybe wrong on the 60kWh but my understanding is they will need to re-certify the car with lighter battery pack not to mention re-tune the suspension. The extra costs are not worthwhile for them with small interests of the 40kWh model. That's even when they are giving 60 kWh cars to people who were only paying 40kWh. At least that was the reason given. I seriously doubt they will ever going to produce the 40kWh model considering they can sell every single car they are able to produce now and in the future.
 
I expect many Model S owners will upgrade to the Model X, so there will be good deals on used Model S in 1-2 years. I suggest you wait until then. I wouldn't bother with looking for an inventory car right now: most inventory cars are loaded, so you won't come close to your target price.

If you absolutely need a short-range EV now, consider leasing a Leaf - the lease deals are very attractive.