Tesla decided to cut the price on its Model S Vehicle even if it was its lowest range and cheapest version of an electric car. The company wants to lower the price of the Model S which features a 75 kWh battery. In March, the automaker announced that it would discount their 60 kWh Model S within a month. This suggested that it will be a massive gap between the 60 kWh version estimated at $68,000 and the 75 kWh one which amounted at $74,500.
Tesla decided to drop the price for their Model S vehicle which features a 75 kWh battery
Now that Tesla has already dropped the price on the 60 kWh Model S, they decided discounted the 75 kWh version by %5,000. Now, its starting price is of $69,500. The 75 kWh version of Model S is now only $1,500 more than the previous 60 kWh version of Tesla’s electric car. The model which features the 75 kWh battery sports more range than the 60 kWh version did.
For instance, the 60 kWh Model S had a range of 210 miles while the 75 kWh one is able to drive up to 249 miles. Moreover, Tesla is bound to outfit the car with the all-glass roof which will be a standard option. Before this selling strategy, the company would have sold the all-glass roof option for an extra $1,500.
Now, the new price of the car had been reduced by $5,000
Besides this decrease in price for the Model S vehicle, Tesla also decided to diminish the price for the dual-motor 90 kWh and the dual-motor 75 kWh. Nevertheless, later this month the automaker is bound to increase the costs for its flagship 100 kWh model. The overall impact of this new marketing strategy of the company will bring positive outcomes for Tesla.
Probably, now that the price is lower, the demand for Model S vehicles might increase, helping the automaker balance its profits. Tesla could significantly improve the demand for Model S cars for a variety of reasons. One of these reasons concerns Tesla’s Model 3 and its low cost back in July when it will be launched. A second reason consists of the net vehicle sales of the company have continued to increase, being driven by the new Model X SUV of the company.
Thus, a decreased price for Model S electric cars could help the company prevent a decline in the demand for Model S or facilitate a higher demand for the sedan.
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