Tesla to stop selling its least-expensive vehicle

Tesla has already sent out emails to inform prospective customers and those who had expressed interest in these variants. The Palo Alto auto manufacturer decided that it was time to kill its entry-level Model S, dubbed the 60 and 60D.

Tesla says it is making the change because most customers eventually upgrade to 75 kWh battery and they want to expedite the ordering process. The iconic electric car-maker has revealed that it's discontinuing the Model S that comes with a 60 kilowatt-hour battery, in other words its cheapest vehicle now available. Unlocking of the remaining 15 kWh increased the range of the Model S 60 from 210 miles (338km) to 249 miles (400km) and that of the 60D from 218 miles (350km) to 259 miles (417km). The company is preparing to roll out a new model this year.

Tesla Inc said it expects to raise about $1.15 billion from a stock and senior notes offering, an infusion of needed capital as the electric vehicle maker enters pre-production of its upcoming Model 3 electric sedan. Last we heard, Tesla is still planning to ship upwards of 100,000 Model 3 vehicles before 2018. At this point, you are probably wondering what that amount means for a company like Tesla, and we are here to clarify that aspect.

The transaction could be worth as much as $1.4 billion to Tesla if underwriters Goldman Sachs, Deutsche Bank, Citigroup, Morgan Stanley, Barclays, Merrill Lynch and Credit Suisse exercise all their options.

If Tesla doesn't introduce a new version of the Model S after April 16, buyers will have a total of five options to choose from on the Model S. While management has said it expects Model 3 to drive most of this growth, there's no indication it expects the more expensive Model S and Model X sales to fall as Model 3 deliveries take off.

But the cheaper Model S options, while they still exist, don't actually have 60 kWh batteries.

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