Tesla to Stop Selling Its Lowest-Priced Model S

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Tesla Model Inc (NASDAQ:TSLA) will stop selling its lowest-priced Model S.

TeslaThe vehicle in question is the Model S 75 with rear-wheel drive, which once was the entry-level sedan from the company, retailing for $70,000. As of Sept. 24, the company will no longer offer the vehicle.

This move will reduce Tesla’s Model S lineup to the 75D, 100D, and P100D, all of which are dual-motor all-wheel-drive sedans. The move makes sense as the company readies itself to launch the Model 3, which can be found for half the price and marks the company’s new entry-level sedan.

The Model 3 will offer rear-wheel drive for starters, but an all-wheel drive will arrive sometime in the future. The new Tesla car is also the first mass-market vehicle offered by the company, making electric and hybrid options more affordable for the average consumer.

Other vehicles that Tesla has removed from its lineup include the mid-range 85-kWh Model X and rear-wheel drive 90-kWh Model S, which were eliminated back in early 2016.

Tesla CEO Elon Musk recently cleared up some misconceptions regarding the new vehicle as many believed the Model 3 to be an improvement over the Model S. However, the former is a different vehicle altogether, as well as a cheaper offering.

Another electric vehicle that has been making headlines lately is the Proterra electric bus, which broke the world record for longest distance traveled on one charge.

TSLA shares fell 1.3% Thursday.


Article printed from InvestorPlace Media, https://investorplace.com/2017/09/tesla-inc-tsla-model-s-27/.

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