Elon Musk drops cheaper Tesla Model S and X 75D versions

Tesla CEO Elon Musk is (still) not averse to making shock business announcements by Tweet.

In a surprise move, he announced via Twitter Thursday morning (Australian time) that Tesla would be dropping the 75D (75kWh battery) versions of the Model S and Model X.

Last orders for these variants were taken as of noon on Sunday 13th January, Pacific Standard Time. After that, only 100D versions will be available.

As a consequence, the price of a Model S or X is effectively being increased by around AU$25,000 – potentially pushing some buyers of S or X Teslas into looking at the new Jaguar I Pace EV.

The reasoning behind the changes are hard to guess at, but may be linked to moving the Models S and X into a more premium segment of the market to differentiate them from the Model 3. (Premium versions of the Model 3 currently cost very little less than a base 75D Model S).

A second possible reason is that potential buyers of lower spec 75D Models S or X may be pushed into considering a high spec Model 3 instead at a time when orders for the high spec Model 3 are falling.

Some pundits are surmising this is because the still remaining reservation holders in the US who have not completed their Model 3 orders are waiting for the promised – but yet to be built – $35,000 base version.

A third possible reason proposed is that it is being done to smooth a manufacturing bottleneck at Tesla’s Freemont factory by allowing the reconfiguration of the 75kWh battery manufacturing line, necessitating the temporary dropping of the 75D option. (Potentially to be replaced with a different, and likely better, version later).

Whatever the reasoning, if you did want a 75D Model S or X it’s just too late now, as new orders for fully tailored vehicles closed this weekend (or 7am Monday morning, AEDT time).