Tesla Kills Mid-Range Model S 85, Pre-orders For $35,000 Model III Open Next Month
Rather than maintain product lines with similar battery capacities, Tesla has decided to axe the Model S 85. "The recently introduced 90kWh battery pack offers unprecedented range and value that has been well received by our customers," said a Tesla representative in a statement to Mashable. "As a result, we will no longer be offering the 85kWh battery."
With the Model S 85 now out of the picture, the Model S lineup looks like this:
- Model S 70D (70kWh, all-wheel-drive, $75,000)
- Model S 90D (90kwH, all-wheel-drive, $88,000)
- Model S P90D (90kWh, all-wheel-drive, performance model, $108,000)
With that out of the way, there’s also some fresh news on the Model III front, which is Tesla’s upcoming entry-level electric vehicle. Pre-orders for the vehicle will commence in March, when the vehicle is revealed to the public. And although many people remain skeptical that Tesla can actually bring a 200-mile EV to market (and make it profitable) while priced from $35,000 before incentives, the company is doubling down on its claims.
"We can confirm it's $35,000 before incentives," confirmed a Tesla spokeswoman. "We haven't changed our minds."
Where things get interesting is when you take into account federal and state incentives for EVs. The Model III will qualify for a $7,500 federal tax credit (depending on your taxable income) which would knock the effective price tag down to $27,500. The state of California addition offers a $2,500 state EV credit which would bring the price down to a sweet $25,000. But that’s not all — the big prize is for potential customers in the state of Colorado. The state offers a $6,000 tax credit, which would make the effective cost of a base Model III $21,500.
While all of this sounds extremely exciting to EV watchers, we have the feeling that the $35,000 Model III will be for all intents and purposes a rolling unicorn. The company will probably artificially limit production so that it can push customers into higher-priced Model III trims which pack on the features.
But all is not lost, customers looking to get secure an affordable EV with a 200-mile range can always turn to the Chevrolet Bolt, which will have a starting price of $37,500 before federal and state tax incentives.
