No Joke: Tesla exceeds sales expectations but cancels entry-level model due to poor demand

Tesla Model S

Given that it’s April First, the news from Tesla seemed like a bit of a larf. Turns out, however, it’s not. The upstart luxury EV brand has axed plans for its $50,000 40 kWh Model S battery pack.

Customers who put down a deposit for a 40 kWh model will still receive one, however. As a Tesla press release put it: “The customers who ordered [the 40 kWh] option will instead receive the 60 kWh pack, but range will be software limited to 40 kWh. It will still have the improved acceleration and top speed of the bigger pack, so will be a better product than originally ordered, and can be upgraded to the range of the 60 kWh upon request by the original or a future owner.”

How much it will cost to unlock the extra 20 kWh worth of battery life is for now unknown. It stands to reason that buying the 40 kWh model secondhand and paying Tesla to unlock it, rendering it a 60 kWh model, would be the smart way to go.

Additionally, Tesla has announced that it has gone above and beyond and installed Supercharger hardware on all 60 kWh models, in anticipation that all customers will eventually buy the upgrade, allowing them access to unlimited long distance travel for life. Additionally, Tesla sees the upgrade as a boon to resale values, which adds equity for the first owner.

Lastly, Tesla has announced that it has exceeded its sales goals, having taken orders on 4,750 units versus the 4,500 that the company had previously projected.

Frankly, we’re quite impressed with Tesla’s announcements. They seem to be truly keyed in to, and concerned with, the future of their cars and customers satisfaction.

We wish other automakers showed the same level of care and concern. All too often it seems that once the vehicle leaves the lot, the brand no longer has concern for the vehicle. Tesla appears to want to nurture the vehicle throughout its life and across generations of owners.

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