Tesla Motors Inc announced plans to increase the price of the Model S 60 kWh by $2,000 a few months back, and in November, the price jumped to $68,000 from $66,000. It now seems that Tesla had a longer term plan in mind. The EV firm has now reduced the price of the over-the-air software upgrade from the S 60 kWh to the 75 kWh hour option by $2,000, notes InsideEVs.
Tesla in-car purchase tactics
Tesla Motors Inc offers numerous over-the-air software updates/upgrades that users can pay for ‘after the fact.’ This means they can choose whether they wish to add or upgrade after purchasing the vehicle. Of all those updates, the most significant one is upgrading the battery. It is also the most expensive, notes InsideEvs.
The concept is really amazing as it offers the customers with the freedom to decide if they want their car to be faster, and get a new powertrain simply at the push of a button. Hoping to sell features that are already installed (but not unlocked), Tesla has been using in-car purchase tactics.
For example, it introduced a free 1-month Autopilot trial program for owners, who bought the car without activating the feature. Last year, the company even prompted in-car messages to owners advertising the 75 kWh upgrade.
Owners can see the offers through their My Tesla page, where the price for the power bump now is stated as $7,000 instead of the recent $9,000. The customers can opt for the upgrade prior to delivery for $500 less, but the after-purchase upgrade holds a lot more appeal, says InsideEVs.
Which is a better buy – 65 kWh or 75 kWh?
InsideEVs revealed some battery hack information some time back, showing the actual and usable capacity of various Tesla batteries varies. It was found that the original S 60 was a better deal than the 75. But, the best deal “was the software limited S 60, being that it actually has the 75 kWh limited pack,” says InsideEVs.
It could be charged to a full 100%, and gave the customers more for the money spent. When users pay to upgrade it, then they are getting only about 10 kWh of extra capacity not 15 kWh. And, it seems, as if Tesla is taking note of this, and adjusting the cost to mirror the actual bump, notes InsideEVs.
Tesla Motors Inc claims that even though it ships 75 kWh to the customers paying for 60 kWh, it still makes money on the vehicle, notes Electrek. At the same time, the automaker acknowledged that the introduction of the Model S 60 resulted in an average price decrease during the Q3 2016.
“Model S average prices decreased 6.5% sequentially, primarily due to the introduction of the 60 kWh models and production of the 100 kWh variants only starting late in Q3, which would otherwise have balanced that out.”