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Tesla Unveils The Model S 60 at $66K..... effects on the Model 3

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juanmedina

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Mar 31, 2016
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Tesla unveils new lower-priced Model S electric sedan

Tesla Motors said Thursday is it is once again going to make a lower-cost version of its popular Model Ssedan, saying it wants to put the car within reach of more
luxury-car buyers.

The new version, to be called the 60, will be priced at $66,000 and have a range of 208 miles per charge -- roughly double the range of electric cars from most other makers. The all-wheel-drive version, the 60D, will be priced at $71,000. By comparison, the current cheapest all-wheel-drive model, the 70D, goes for $75,300 before destination fees, according Tesla's website.

Top of the line model 3 less than $66K :)... is possible and only 5K for the dual motor option
 
It may take a few hundred M3 sales from people who just can't wait or REALLY need a hatch and couldn't afford the rangier S models.. but overall i don't see a huge effect.

It's stil 30K more for less range than the M3. It does come with free supercharging and is probably a little roomier, but I'm not sure that is swaying people waiting for the M3 to shell out the dough for it.
 
interesting part to me is the battery...clearly it's a 75kwh battery that is software unlockable after the fact. i think this pretty much confirms the will be shooting for one battery for the model 3, and the available size will be controlled by software. same for the high amp charger...
 
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interesting part to me is the battery...clearly it's a 75kwh battery that is software unlockable after the fact. i think this pretty much confirms the will be shooting for one battery for the model 3, and the available size will be controlled by software. same for the high amp charger...


semi-troubling though.

Are 60's going to have reduced range, simply because they're lugging around the extra weight?
 
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interesting part to me is the battery...clearly it's a 75kwh battery that is software unlockable after the fact. i think this pretty much confirms the will be shooting for one battery for the model 3, and the available size will be controlled by software. same for the high amp charger...
Disagree. Everything points to the S60 being a niche car (much like S40 was a niche) and the S sells in lower volume in the first place. Thus Tesla can afford to do this (as they did with S40). The Model 3 base model however will sell a lot more even if it is not the majority of Model 3 (although there is a distinct possibility that unlike the S, most people will choose the base for the 3).
 
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With the 75 kWh battery being software unlockable it reaffirms my belief that the 75 kWh battery is built into base price in addition to a 20%+ margin. The software upgrade therefore is pure profit. Well done!
They might have an expected upgrade % baked into it. Sometimes, a lower sticker price is to get people into the store and not worry so much about the price. If they believe only 5% of people will walk out with a 60 kwh battery, then that 20%+ margin is likely really carried by the folks upgrading for the 75 kwh capacity. If the calculations somehow become the source of a major issue, they can always give a lower priority to delivery without the upgrade.

This is like the airline miles game - the airlines have redemption assumptions baked in. On any one customer, it might be a loss for them to issue the points, but given the number of people who will not use them fully, it works out on the whole.
 
They might have an expected upgrade % baked into it. Sometimes, a lower sticker price is to get people into the store and not worry so much about the price. If they believe only 5% of people will walk out with a 60 kwh battery, then that 20%+ margin is likely really carried by the folks upgrading for the 75 kwh capacity. If the calculations somehow become the source of a major issue, they can always give a lower priority to delivery without the upgrade.

This is like the airline miles game - the airlines have redemption assumptions baked in. On any one customer, it might be a loss for them to issue the points, but given the number of people who will not use them fully, it works out on the whole.
Maybe they'll play the same game with the M3? You buy standard M3 (about 55kWh) but you get a car with hidden 20kWh on top...
 
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Seems to me it's just an indication that the batteries are now cheaper for them thanks to the gigafactory, and they can afford to put a carrot out there for those who don't want to wait for the M3. It really costs them nothing to do this, and its pure profit if buyers opt for the "upgrade".
 
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