It was assumed that Tesla could abandon the slow-selling Model S and Model X production, but instead, the company plans to modernize them again. Indy Auto Man, a used car dealership, keeps up with market trends and shares the newest information on Tesla’s production model changes.
What is going on
Indy Auto Man, the dealer of used Tesla cars, offers an overview of the upcoming lineup updates. Following the updates to relatively budget Model 3 and Model Y, the larger and more expensive Model S and Model X, which are currently in significantly less demand than more affordable electric cars, should undergo a restyling. As Teslarati writes, Tesla Vice President Lars Moravi said that both models will receive their dose of attention from developers in 2025. At the same time, this year, Tesla is going to offer an entry-level model aimed at the middle class buyers, and positioning as the most affordable electric car in Tesla lineup. The company confirmed this plan during the announcement of financial results for 2024.
Model S and Model X destiny
Tesla has no plans to discontinue the Model S and Model X, even though their production currently doesn’t align with the company’s strategic goals. The management isn’t overly concerned about lackluster sales; in the fourth quarter of last year, only 23,000 units of the Model S, Model X, and Cybertruck were sold combined. A representative from the brand mentioned that the upgrades these electric cars received a few years ago were more significant than many buyers realize. It’s still unclear how extensive the current updates will be. One possibility is that Tesla will enhance the features available in these models by adding modern functions. Alternatively, there could be a more comprehensive redesign, bringing the appearance of the Model S and Model X in line with Tesla’s current style.
Why Tesla abandoned the cheapest Model S version
For the first time, Elon Mask mentioned the development of Model S in 2009, and in 2011, he held a presentation. The company immediately opened access to pre-orders on its website. They offered versions with 40, 60, and 85 kWh batteries, as well as Performance trim. The first 1000 owners of Performance cars also received a special Signature package. The power reserve was 160, 230, and 300 miles, respectively.
Model S with a 40 kWh battery went on sale in 2012. The main feature was the price: $57,500 before federal deductions and $50,000 after. Meanwhile, the 60 kWh started at $62,000, and the 85 kWh at $87,000.
By April 2013, the model was dropped from Tesla’s offerings. Customers are voting with their wallets that they want a car offering them the ability to travel long distances when needed. As announced in a press release, only 4% of customers chose the 40 kWh battery, which is not enough to justify producing this version.
It is estimated that around 400 Tesla Model S vehicles with 40 kWh batteries were delivered. However, these cars actually utilized 60 kWh batteries, which allowed Tesla to reduce development costs by limiting the battery capacity to 40 kWh through software. This approach provided the vehicles with enhanced acceleration, a higher top speed, and the option to unlock the full 60 kWh capacity for an additional $10,000.
What’s also interesting is that at the time, competitors couldn’t even offer 120 miles of range, and the top-end versions were several steps behind the cheapest version of the Model S in terms of technology.
Competitors picked the path in which they increased the capacity of batteries every couple of years, forcing their customers to switch to new cars, while Tesla immediately gave customers a choice.
Today, owning a 2012 or 2013 Model S 85 is still as beneficial as before, just without autopilot and some new features, but with all the comfort and quality buyers estimate in these cars.