Will The Model S 60 Be Discontinued (Again)?

Bobby Garrity

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#1
When the Model 3 is in full production, and reservations have been met, will the Model S 60 and 60D be discontinued? I have a few reasons for thinking this may be the case:

1. The S 60 Currently Is Meant To "Anti-Sell" The Model 3: After seeing the amazingly high number of Model 3 reservations, Tesla reintroduced the S 60 to anti-sell the 3 by having a new lowest Tesla entry point. When the reservations are fulfilled, and production is at its target, there will be less incentive to anti-sell the 3.
2. The 60kWh Battery Doesn't Exist: It's already a 75kWh battery that is just software locked. There would be no change to manufacturing if they were to discontinue it.
3. Inadequate Range: The S 60 has an EPA rated range of 338km (351km on the 60D). That's really not enough. The S 60 has some benefits due to the aforementioned software lock, those being upgradeability, faster top-off charging, and less degradation. But even with all that considered, 338km is not enough range for a $68,000 (US) car.
4. Differentiation: A fully loaded 3 will likely cost somewhere in the $60,000-70,000 range. It will be hard for an S 60 with no options to be justified when one could get a 3 with all the options and 150km greater range for the same cost. Even if Tesla keeps the S 60 at first, they may find that people just choose to not buy them anymore.

Thoughts? Do you instead think that Tesla will continue to make the S 60? Or is my conclusion a very obvious one that we all share and I wasted some time writing this?
 

TrevP

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#2
Sounds likely to me. There not shy about playing around with configs in mid stream.
 

Michael Russo

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#3
Likely yet not sure... remember the two cars will be targeted at two different populations. Some will still prefer the larger size & additional convenience of the rear hatch door of the S, without need for long range and higher performance...
In addition, since the S60 is essentially a software lock down from the 75 kWh battery, it represents an easy way to provide a more affordable entry point into the Model S range, while offering nice margin upgrade for those who will upgrade OTA later on.
In the end, it will depend on how sales of the S60 will hold after the introduction of Model ≡... :)
 

garsh

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#4
In addition, since the S60 is essentially a software lock down from the 75 kWh battery
Batteries are still the most expensive part of an electric vehicle. I don't think the software-locked battery model is sustainable long-term. It was a quick-fix to put out a cheaper car to entice people to forgo waiting for a model 3.
 

Michael Russo

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#5
Batteries are still the most expensive part of an electric vehicle. I don't think the software-locked battery model is sustainable long-term. It was a quick-fix to put out a cheaper car to entice people to forgo waiting for a model 3.
Okeydokey... seems like it's a done deal then... :D
 

BigBri

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#7
Batteries are still the most expensive part of an electric vehicle. I don't think the software-locked battery model is sustainable long-term. It was a quick-fix to put out a cheaper car to entice people to forgo waiting for a model 3.
My thoughts exactly. You can't sell physical hardware at a huge discount that the customer one day opts to use the full pack. They just did it to drive some revenues their way to help ramp things up. I'd expect it to go away soon, maybe around the same time as a Model S refresh and update that could happen before the 3.
 

TrevP

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#9
Making room for Model 3. Keep in mind, they resurrected the S 60 shortly after Model 3 was announced as an enticement for some fence sitters and to generate some sales on the lower end.

With Model 3 just around the corner they really won't be needing a loss leader of sorts and I'd surmise the battery pack size will be close enough they probably don't want any potential overlap.
 

garsh

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#10
I don't think the software-locked battery model is sustainable long-term. It was a quick-fix to put out a cheaper car to entice people to forgo waiting for a model 3.
If they really didn't see too many customers paying for the software unlock, then the margins may have been too low on these models, which would be a reason to remove them from the lineup even thought the Model 3 isn't ready yet.
 

AEDennis

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#11
If they really didn't see too many customers paying for the software unlock, then the margins may have been too low on these models, which would be a reason to remove them from the lineup even thought the Model 3 isn't ready yet.
It's the same excuse they gave when they killed the 40 in lieu of the original 60...

It sounds better than we lose too much money on folks that bought the lower range battery license for a bigger battery.
 

Michael Russo

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#14
Probably just a matter of time. Certainly got email here in Belgium announcing it.