Tesla will discontinue entry-level Model S and Model X cars with 75-kWh battery

By Stephen Edelstein Updated January 15, 2019

2016 Tesla Model S P100D

The base price of Tesla Model S and Model X electric cars is about to shoot up. On Wednesday, Tesla CEO Elon Musk announced that the automaker would stop selling the 75-kilowatt-hour battery pack in both cars. Customers have until January 13 to order cars with the smaller (and less expensive) battery pack.

Tesla has reshuffled battery-pack options for the Model S and Model X multiple times, but this change means both cars will now be available with only Tesla’s largest 100-kWh battery pack. Unless Tesla has new variants planned, the elimination of the entry-level 75-kWh variants will cause a major increase in prices. The base price of the Model S is set to jump from $77,200 to $95,200, while the Model X’s base price will increase from $83,200 to $98,200.

The change should help further separate the Model S and Model X from the Model 3. On paper, the Model 3 is supposed to be Tesla’s entry-level model, with the Model S and Model X positioned above it in the lineup. But the Model 3 currently starts at $46,200, and prices can rise to $71,200 with options. Tesla hasn’t started deliveries of the base version of the Model 3, which will start at $35,000. Those cars will be available in four to six months, according to Tesla’s website.

With pricing as it is, the Model 3 and a lightly-used Model S are close enough that customers could cross-shop them, which probably isn’t what Tesla wants. But dropping the 75-kWh version of the Model X means Tesla doesn’t have a lower-priced crossover to compete with the Jaguar I-Pace, which starts at $70,525.

The timing of the announcement is also unusual. As of January 1, Tesla electric cars are only eligible for half of the $7,500 federal tax credit. That’s because Tesla reached the 200,000-unit cap for the full credit in the middle of last year. The credit will be halved again in the middle of 2019, before disappearing altogether at the end of the year. Tesla is cutting prices by $2,000 to help compensate, and cars may still qualify for state and local incentives. General Motors may be in the same boat, but it’s only current all-electric car is the Chevrolet Bolt EV, which starts at $37,495.

Topics

Stephen Edelstein

Contributing Editor

Stephen is a freelance automotive journalist covering all things cars. He likes anything with four wheels, from classic cars…

Cars

Tesla cuts price of touchscreen upgrade by $1,000 amid recall pressure

tesla media control unit price cut model s car

A massive 17-inch touchscreen is one of the signature features of the Tesla Model S and Tesla Model X electric cars. Known as the media control unit (MCU), it's been pushed to its limits by the various new features Tesla has added over the years, so Tesla started offering an upgrade for older cars last year -- and it just cut the price of that upgrade by $1,000.

The price of the upgrade has dropped from $2,500 to $1,500 — with no explanation from Tesla. The listed price on the company's website was simply changed, according to Electrek. The upgrade switches out the MCU in older Model S and Model X electric cars with a more powerful version that can handle newer software features and is aimed at providing better touchscreen response as well.

Cars

Tesla recalls nearly 10,000 Model X and Model Y vehicles

tesla driver selection process model x crashes 1200x0

Tesla is recalling nearly 10,000 of its Model X and Model Y vehicles to sort out a couple of safety issues.
Model X
Announced by the National Highway Traffic Safety Administration (NHTSA) this week, the recall includes 9,136 Model X cars from model year 2016. It concerns a potential issue with two external trims, or appliques, which could come away from the top of the car as it’s in motion, risking the safety of the occupants of a vehicle following close behind.

As per the NHTSA: “The Model X is equipped with a cosmetic applique at the front of the roof just behind the windshield, known as the front applique, as well as an applique at the center of the roof in between the upper falcon door roof glass, known as the spine applique. Both appliques are adhered to the vehicle using urethane. If the applique-to-urethane interface lacks primer, then, over time, the adhesion may weaken, causing the applique to separate from the vehicle.”

Cars

How to buy a Tesla online

Tesla Roadster front view

Tesla has sold cars online since its inception. Early on in the company's history, adopting a digital sales model was a way to avoid setting up a network of third-party dealers. Fast forward to 2020, and it's turned into an excellent way to put new cars in the hands of customers while limiting in-person contact. Here's how it works.
Find the model and version that suits you

To start, visit the company's official website and select the model you're interested in. Tesla currently sells six cars: The Model S, the Model X, the Model 3, the Model Y, the Roadster, and the Cybertruck. Only the first four are in production, but each one is offered in several configurations. For example, the rear-wheel-drive Model 3 is available in one configuration called Standard Range Plus, while buyers who need all-wheel drive can select the Long Range or Performance version.