Tesla cuts the price on its entry-level Model S by $7500

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In other price adjustments, Tesla announced that upgrading a 60kWh Model S battery to a 75kWh is now $2,000.

Just as Tesla (NASDAQ: TSLA) is discontinuing the 60-kilowatt-hour variant of its Model S, which was its cheapest and lowest-range version of the all-electric vehicle, the automaker is significantly lowering the price of the Model S version with a 75 kWh battery. The all-glass roof, formerly a $1,500 option, is now included as standard equipment along with an automatic power liftgate on all Model S sedans. The 75kWh option now costs $69,500 after the $7,500 price cut and has become the cheapest Tesla on offer.

Along with the price decrease for its 75 kWh Model S version, Tesla has decreased the price for its dual-motor 75 kWh and dual-motor 90 kWh versions. Active Spoiler will no longer be available for the Model X. These changes follow the official discontinuation of the Model S 60 yesterday, which started at $66,000. The highest-performance Model S P100D will cost $141,200 (up $5,500), while the Model X P100D will cost $146,200 (up $9,500).

However, Tesla has announced today that the Model S 75 kWh has received a significant price drop - $7,500, meaning that the new price of the auto is $69,500. For this extra money, base-model buyers upgrade from 210 miles to 249 miles of range, as estimated by the EPA.

So, there you have it: something of a pricing shake up over at Tesla HQ. So go ahead, or keep waiting for Model 3 to arrive.

"Periodically we have adjusted pricing and available options to best reflect the value of our products and our customers' preferences".

As for those price increases, we can expect to see jumps for many of Tesla's higher-end vehicles. We expect our total average selling price to remain nearly exactly the same. There won't be any Model S that will have battery pack less than 75 kWh.

Tesla could use a boost to Model S demand for several reasons.

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