Tesla cuts Model S price to lure Model 3 buyers

Date: 16 JUN 2017posted by Car Rentaledited by WinX

Tesla has sweetened the deal for potential buyers.

During the annual shareholder meeting on June 6th, CEO Elon Musk announced new changes to the Tesla Model S sedan's warranty structure and major price cuts on used examples. "Maybe somebody wants to buy a Model S for $35,000 to $40,000," he said "and they can have that today." "And then when the Model 3 comes in, they can switch out to the model 3, if they want. Model S is still going to be - because it's more expensive car, bigger, there is more room for bells and whistles - it's still going to be our premium car."

The concept is to get interested buyers of the Model 3 behind the wheel of a Model S, especially if the customer hasn't yet pre-ordered the Model 3. The production for the Model 3 is expected to be on time and is slated to begin during the second half of this year, but it could be 18 months or more before the customer who orders today receives their vehicles. These renewed pricing could be extremely tempting for those who are looking to own a Tesla. Currently on the used market, a Tesla Model S 60 currently sits around $32,000, while a lower-mileage 85 sedans priced around $40,000.

The new warranty structure now allows pre-owned Tesla's to be eligible to receive a two-year/100,000 mile warranty. Which may be the difference maker for some potential buyers since most of the used cars have logged fairly high miles for relatively new models. Some examples exceeded 60,000 miles, while some have seen over 91,000 miles. The previous warranty only covered 4 years/50,000 miles. The vehicles also receive 24-hour roadside assistance as part of the restructured warranty. Aggregated data shows that most Model S cars, even those that have logged over 100,000 miles, have retained 90 percent or more of their battery capacity so far.

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