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April 12, 2019 by Kyle Field
Tesla announced today, in a new blog post, that it was phasing out model 3 of the standard range at $ 35,000. The car will not leave completely but in an awkward reversal of its online sales policy only, it will only be available when visiting or calling. a Tesla store and specifically asking for basic configuration.
Not so standard
Tesla stated that all 3 models in the Standard range would be built on the Standard Range Plus platform, with limited software battery and other software limitations:
"Its range will be limited to 10% and several features will be disabled via software (including our integrated music streaming service, Live Traffic Visualization and heated seats). Similar to other limited-software vehicles produced in the past, Standard customers will have the option to upgrade to a Standard Plus at any time. Similarly, anyone who has already purchased Standard Plus and wishing to upgrade to Standard is welcome, and we will refund the difference in cost. "
This decision comes just weeks after Tesla launched the basic configuration of the standard range and the standard plus range. This announcement comes just days before the company makes its first deliveries of models of the standard range 3 to customers this weekend. These versions will all be software versions of the Standard Plus Series. Buyers will be able to upgrade after the fact, although details on how to do it are rare at the moment.
According to Tesla, the change in the range is a direct result of the Standard Range Plus configuration request, which is 6-1 higher than that of the Basic Standard range.
"Last quarter, we introduced two new variants of Model 3 at more competitive prices than ever before: Standard and Standard Plus. Since then, Standard Plus has sold six times faster than Standard, which far exceeds our expectations. "
The restructuring also moves the long-range 3 and rear-wheel model 3 into the progressive progressive stage category. To achieve this configuration, buyers will also need to call or visit a store to specifically request the configuration.
Autopilot inside
Tesla also adds its autopilot software to each Tesla 3 model and reduces the price of the new package provided. For example, model 3 in the standard plus range cost $ 37,000 in the United States, with the autopilot representing an additional $ 3,000. The new price for the same configuration is $ 39,500, offering buyers a better offer of the autopilot package now included.
The autopilot inclusion costs nothing to Tesla, but adds a significant advance to the base price of a 3-model for all new buyers. Tesla said the decision to include the autopilot in the basic configuration of all new models 3 had been made to improve the safety of its vehicles:
"We think the autopilot inclusion is very important because our data clearly indicates that the risk of an accident is much lower when the autopilot is activated. The autopilot also greatly improves the quality of the driving experience, especially in high traffic places, as frequently described by thousands of online customers. "
The autopilot is fine, and the pilots are surely safer when it's activated, but for Tesla, the flip side is that they're earning $ 2,500 more on every model 3 sold today for software for which they are already on the hook development.
summary
These changes to Model 3 options and pricing are just the latest in a long price list. The changes made to Tesla's Model 3 have become a real price chain that looks more like an amusement park attraction than at an average price. luxury vehicle of large size. At every turn, customers are now wondering if the price will go up or down and, if so, by how much.
I am all for an agile business model that changes over time, but the price hike Tesla is putting its current and future buyers on the market is becoming increasingly nauseating.
Keywords: autopilot, full stand-alone driving, options, limited software, standard range, plus standard range, Tesla, Tesla model 3
About the author
Kyle Field I am a technology lover, pbadionate about finding concrete ways to reduce the negative impact of my life on the planet, save money and reduce stress. Live intentionally, make conscious decisions, love more, act responsibly, play. The more you know, the less you need it. TSLA investor.
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