In a tweet sent Thursday, Elon Musk, president and CEO of Tesla, said the electric car maker would stop accepting orders for the 75D versions of the S and X models on Sunday night. Musk did not explain in detail why the company was eliminating these options, but said that Tesla would not remove Model S or Model X this year.
As of Monday, Tesla will no longer take orders for the 75 kWh version of the S & X model. If you like this version, please order it by Sunday night at https://t.co/46TXqRJ3C1.
– Elon Musk (@elonmusk) January 9, 2019
"Def not," was Musk's answer when asked if the S and X models would soon disappear from Tesla's offerings.
Now, when you call a "cheap" Tesla, everything is relative.
The Model S 75D starts at $ 76,000 and can run for about 259 miles with a fully charged battery. This version of the Model S costs $ 18,000 less than the Model S 100D car, which has a battery life of 335 miles.
The X model that is abandoned has an initial price of $ 82,000, and a range of 237 miles. The next version, the Model X 100D, will cost you $ 97,000, while allowing you to travel 295 miles with a fully charged battery.
Gene Munster, managing partner of Loup Ventures, said Tesla's decision to streamline its operations was necessary as the company was preparing new versions of the S and X models expected later this year.
"These models (Model S and Model X) are actually four years old," said Munster. "We think the company is erasing its inventory and does not want to create low-end models before updating S & X, probably in 2019. Specifically, the update will likely concern the battery."
Dan Ives, director of technology research at Wedbush Securities, said Tesla's projects were aimed at driving more consumers to Tesla's cheapest model, the Model 3 sedan.
"It's all about simplifying production from Fremont," Ives said. "Model 3 remains the essence of Tesla's engine, and this latest Musk initiative further strengthens this strategic shift."
Model 3 currently costs around $ 57,000 for models with certain amenities, such as battery life. Tesla has set a goal to release a model 3 with a selling price of $ 35,000 this year. The company should also give more details about its next Model Y car in the coming months.