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Why Tesla Is Halting Sales of Its Cheapest Model S Sedans and Model X SUVs

By
Grace Dobush
Grace Dobush
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By
Grace Dobush
Grace Dobush
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January 10, 2019, 7:23 AM ET

Tesla will no longer sell the cheapest versions of its Model S sedans and Model X SUVs as of Monday, CEO Elon Musk tweeted overnight. That’s because Tesla (TSLA) is discontinuing its 75 kWh battery pack, which it introduced in 2016.

Starting on Monday, Tesla will no longer be taking orders for the 75 kWh version of the Model S & X. If you’d like that version, please order by Sunday night at https://t.co/46TXqRJ3C1

— Elon Musk (@elonmusk) January 9, 2019

As of next week, the Models S and X base vehicles will come with 100 kWh batteries and start at $94,000 and $97,000, respectively. If you order by Sunday night, the cheapest Model S will run you $76,000 and the Model X $82,000.

Musk also said yesterday that future Tesla roadsters will hover off the ground with “SpaceX cold gas thruster systems.” And he said the Summon feature, which makes the car come to you when you call it, will be rolled out to some users in the next few weeks.

Going through final validation & regulatory approval. Probably releases to early access program owners in a few weeks. It’s trippy!

— Elon Musk (@elonmusk) January 10, 2019

Reducing the number of variations of Model S and X vehicles Tesla makes may help the company control costs, or reallocate materials and labor to other initiatives, CNBC reports. And it could drive more buyers to go for a Model 3 instead, which starts at $44,000 and can be fully tricked out for $68,000.

Electrek reports the Model 3 was the best-selling premium vehicle in the U.S. in 2018, with Tesla delivering 145,846 last year (which includes about 5,000 to Canadian buyers). In second place was the Lexus RX, with 111,641 deliveries in 2018, according to Toyota.

Tesla is gearing up for international expansion in 2019 with this week’s opening of its first Gigafactory in China, which will produce affordable versions of the Model 3 and Model Y.

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By Grace Dobush
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