Elon Musk is trying to get Tesla Model 3 reservation holders to buy the Model S


Yesterday, we were blessed with an always appreciated and unusually long Tweetstorm by Tesla CEO Elon Musk. He shared a few new details about the Model 3 and its rollout, but I feel like the main point that transpired from the Tweetstorm is that Musk is trying to down-sell the Model 3 and push the Model S instead.

It’s something that he already said Tesla is attempting to do when potential customers show interest in the Model 3 for which the company already has a backlog of ~400,000 reservations – he called it “anti-selling the Model 3′ in a recent conference call with analysts, but it was never clearer than in the series of tweets he sent out yesterday.

He started off by making sure that people understand that the Model 3 is not the “next Tesla” as in a “next generation of the Model S”, but a new model positioned below the Model S.

That shouldn’t come as a surprise for most people following Tesla, but what followed was a series of tweets that somewhat changed the perception for some Model 3 reservations holders – starting by saying that the Model 3 will not be available with all-wheel-drive dual motors at launch.

It’s likely to change the plans of a lot of reservation holders – mainly for US reservation holders since it sounds like the all-wheel-drive version will be ready by the time the vehicle receives homologation in other countries.

Interestingly, the timing of Musk’s announcement comes as Tesla announced that they are discontinuing the Model S 60 and 60D – the least expensive versions of the Model S.

First day Tesla Model 3 reservation holders in the US who were planning on buying a dual motor all-wheel-drive version of the Model 3 and who are looking to get their car “6 to 9 months” later than anticipated could now be tempted to buy the Model S 60 D before it’s discontinued next month.

A Model S 60D starts at $73,000 in the US, but it guarantees that you will get access to the full $7,500 federal tax credit and with a $1,000 referral discount, it ends up at $64,500. It’s still a significant pricing difference since the based dual motor Model 3 is expected to start ~$40,000, but the urgency could convince a few reservation holders, especially since the Model S 75D at $79,500 will become the least expensive dual motor model next month when Tesla discontinues the 60D.

Musk then highlighted that the Model S has more bells and whistles than the Model 3:

Musk even added that he will keep driving his Model S when the Model 3 comes out.

You add the fact that chances are now lower than ever for the Model 3 to feature a head-up display and it’s now clear that Musk wants for people to know that aside from the price, there’s no reason that people shouldn’t want to buy a Model S instead of a Model 3. Like the Model 3, the all new Model S sedans are equipped with the hardware suite that Tesla claims will enable full self-driving capability.

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This article and images was originally posted on Electrek

BY Fred Lambert

 

 

 

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