The Model S and X are Tesla’s second and third major lines of electric vehicles, and are higher-priced lines compared to its newest Model 3. The 75 kWh version of the Model S and X that are being retired come with a battery that garners a range of 259 miles for the Model S, and a 237 miles for the Model X.
Higher-end versions of the S and X, equipped with a 100 kWh battery, will still be made and sold by Tesla, but at a higher price. The starting price for a new Model S will be $ 94,000 and the starting price for a Model X will be $ 97,000 from next week, according to Musk’s tweet-announcement.
Tesla did not respond to inquires as to why the S and X offerings were pared back, or whether any team reviewed Musk’s tweet before he shared it.
Retiring the lower-range Model S and X vehicles may push prospective customers to buy Tesla’s high-end Model 3 sedans instead.
A Model 3 with bells and whistles — like dual-motor all wheel drive, enhanced Autopilot, and a $ 5,000 performance upgrade package — will cost around $ 67,000, according to the company’s Model 3 configurator online.
Reducing the number of variations of Model S and X vehicles that Tesla has to make may help the company control costs, or reallocate materials and labor to other initiatives, such as Model 3 production at its packed car plant in Fremont, California or spare parts production in nearby Lathrop.