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Tesla's Cheapest Model S To Be Discontinued

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Tesla's Cheapest Model S To Be Discontinued
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Now that Model 3 production is ramping up, Tesla will be discontinuing its lowest-priced Model S, previously the company’s most affordable option. Tesla will no longer be selling the rear-wheel-drive version of the Model S starting Sept. 24 but will be continuing production of the rest of the Model S lineup, including the 75D, 100D and P100D models.

Even equipped with its long-rage battery package, Premium Upgrades Package and Enhanced Autopilot autonomous capabilities, the Model 3’s $57,500 price tag is well below the $69,500 starting price of the soon-to-be-discontinued Model S. Replacing the base Model S was always part of Tesla’s plan for the Model 3.

Drivers who want an affordable way to get behind the wheel of a Tesla anytime soon have until Sunday to purchase the rear-wheel drive Model S. New Model 3 orders will take more than a year to be delivered, according to Tesla.

General Motors Company (NYSE: GM) is hoping the window between the discontinuation of the Model S and the widespread availability of the Model 3 will push impatient, budget-minded buyers toward the Chevy Bolt EV, which is priced at just under $38,000 and is already widely available.

Tesla has said it expects to be producing at least 20,000 Model 3s per month by the end of 2017.

Earlier this week, Bernstein analyst Max Warburton warned Tesla investors that the company’s self-driving technology is “exaggerated,” and there is very little difference between the autonomous driving capabilities of Tesla and German automakers, such as BMW (OTC: BMWYY) and Volkswagen AG (ADR) (OTC: VLKAY).

Related Link: Model 3 Vs. Chevy Bolt: A Line-By-Line Comparison

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Image Credit: By Ominae (Own work) [CC BY-SA 4.0 (http://creativecommons.org/licenses/by-sa/4.0)], via Wikimedia Commons

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