Tesla Motors introduces two less costly Model S versions

Thu Jun 9, 2016 10:50am EDT
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(Reuters) - Electric carmaker Tesla Motors Inc (TSLA.O: Quote) said on Thursday it would offer two slightly lower-priced versions of its electric Model S sedan, starting at $66,000 in the U.S. market.

The current Model S starts around $76,000 and is often delivered to customers at a price of about $100,000.

Prices are before tax incentives are applied.

The new versions, the rear-wheel drive Model S 60 and the all-wheel drive Model S 60D, will have slightly less range than the Model S already sold. The Model S 60D starts at $71,000 in the U.S. market.

The newer models will have a range of more than 200 miles, Tesla said in a statement.

The Model S 60 and Model S 60D will be sold with a battery pack with a capacity of 75 kilowatt-hours, but will be limited to a capacity of 60 kWh. Tesla said owners will have the option to get a software upgrade to allow the car to have a capacity of 75 kWh and the longer range it provides.

Analyst Joseph Spak of RBC Capital said the upgrade option will cost $8,500 at purchase or $9,000 after purchase.

A 60 kWh battery has an estimated range of 218 miles for the rear-wheel drive Model S 60 and 210 miles for the Model S 60D, Tesla'a website shows.

The upgrade to the 75 kWh battery pack will add about 40 miles of range to each model.   Continued...

A Tesla logo on a Model S is photographed inside of a Tesla dealership in New York, U.S., April 29, 2016. REUTERS/Lucas Jackson