A few thoughts on Tesla’s new lineup. First up: the end of the $3k “full self driving (FSD)” option, which never should have been a thing. Tesla started selling FSD 2 years ago, and there's still nothing to show for it. Here’s what I wrote last year: bloomberg.com/news/articles/… 1/
Either 1) Tesla is facing regulatory action over this scheme 2) Tesla is acknowledging FSD is still far off or 3) Tesla realizes it’s going to cost a lot more than $3k in hardware upgrades to make it work. Either way, it’s not great for Tesla (but good they finally killed it). 2/
Next up: the surprise $45k mid-range Model 3. Seems like Tesla is trying to entice drivers who really want the $35k version in order to make Q4 financial goals. This also pushes more people to the high-margin AWD version, as you can no longer buy long range battery without AWD 3/
I’m sure this makes sense for Tesla—and there will be plenty for whom this mid-range hits the sweet spot—but I think it’s a bummer. Lots of daily commuters are better suited for the further-delayed $35k version. And most drivers who require longer range really don’t need AWD 4/
The long-range RWD version was super efficient and was the cheapest range you could buy in any electric car, by a good margin. It’s the version I’d buy if I were in the market. LR RWD RIP. Maybe it'll return when the $35k version shows up? 5/
On the plus side *after US+CA/NY/CO/MA incentives* you can now buy a $35k Model 3. Maybe the plan is to drop prices gradually to match the phase-out of incentives—next comes short range with mandatory premium options, then short range with base options when the credits end? 6/
Another very plausible explanation that @Robotbeat points out is that the biggest logjam in Tesla's Model 3 production may be battery cell production (Panasonic has suggested as much). Swapping the Mid Range for the LR RWD allows TSLA to make more packs and maximize tax credit 7/
A fourth possibility for discontinuing FSD: as @GeorgeB12971651, it could be temporary until the computer upgrade is ready to deploy to all new cars. The sheer number of cars going out now could create a service nightmare when it comes time to make the swaps.
