Tesla adds more range and speed to its entry level car, for more money

BREAKING: $75,000 Tesla Model S 70D: AWD, 240-Mile Range Is New Base Version

It's a move that is probably required to have the same battery packs, but 200 mile range in the model X. It may foretell that in the future model 3, duel motors or electronic awd will be on the base smaller pack.

Its pretty cool when you think about it. Supercharging is now a forced option as is awd. You add range from 208 to 240 miles (32 miles), acceleration improves to 5.2 seconds (faster than the rwd 85). AWD probably means better handling despite the added weight. All this for the low low added price of $5000. They include the autopilot sensors, but it cost $2500 to turn them on, so make that $7500 more.

Price for the new model S 70d with autopilot and destination minus the federal $7500 tax credit is $71,200. There are more options you can add, but that probably is the base very nice outfitted car. You can see why lexus is scared.

 

Tesla is replacing 1 bigger induction motor with 2 smaller ones. The additional motor requires additional control software but this is a one time cost that that can be spread over all of the cars, with additional software modifications for each battery size and model. It requires some extra motor control hardware but this follows closely with moore's law in price reduction. My guess is tesla's variable cost on the extra hardware is less than $1000. The extra 10kwh of battery @$275/kwh would have a cost of $2750. That leaves $1250 to pay for super charging and extra profit over the model S 60 kwh. When the gigafactory gets going battery cost should drop 30% from $19,250 to $13,500.

I'm sure the R&D for this is all for the model X, but you get more regen and better handling for about $1000/car now, and it may be even less expensive for the model 3. Say the model 3 gets a 50 kwh pack, that should cost tesla less than $11,000 for battery and awd, why not put it in the base model. The question is how much the rest of the car is going to cost? The leaf without the battery cost sells for about $20,000. I expect the rest of the model 3 to be nicer than the leaf but it should be profitable to put that battery and awd in a $35,000 car before tax credits. I still think it will be closer to $40,000, but it all depends on demand and competition.

 

I don't understand all these deposits on too good to be true cars.

Elio has a chance, but I doubt they can actually stay in business at the price point and efficiency. Certainly efficiency numbers are easily doable. The problem is they aren't likely doable in a package that sells well in the US. So can elio actually produce the car at close to the cost at the lower volumes. The honda fit and prius c certainly are more expensive and less efficient, but are more comfortable, and give a much higher driving position, and will be perceived as much safer. These cars are probably inexpensive enough, with good enough fuel economy, to be chosen over the elio. If somehow gas prices get much much higher though, perhaps people will give up their comforts and perceived safety for the elio's low cost and efficiency.