Tesla Model S, Model X Go On Sale, Others Get Price Hike

Tesla Model S

Tesla Model S

To this point, Elon Musk took to Twitter this past January and said Tesla models will undergo substantial revisions every 12 to 18 months.

The price on Tesla's (TSLA -0.9%) cheapest vehicle - the 75kWh Model S - has been dropped $7.5K to $69.5K.

That means the cheapest Model S starts at $70,700 for the 75 and $75,700 for the 75D - within $1,500 of the just-discontinued Model S 60 and 60D. That $7,500 price drop helps make its least expensive auto more affordable, just $1,500 more expensive than the $68,000 Model S 60 the automaker discontinued recently. Tesla kicked things off by discontinuing its 60kWh Model S, which saw its last day of availability yesterday.

Tesla's spokesperson issued a statement regarding the price changes. According to the company, most customers ended up buying an equivalent to the Model S 75 kWh.

Now if you happen to be a Tesla owner who recently purchased the Model S 60, Teslarati relays that those users can now unlock more range with an over the air software update that costs $2,000.

Tesla's automotive gross profit margin is particularly important as the company brings its Model 3 to market later this year.

Tesla could use a boost to Model S demand for several reasons. The base price of Model X 75D is now $82,500.

"Periodically we have adjusted pricing and available options to best reflect the value of our products and our customers' preferences", Tesla says. We expect our total average selling price to remain nearly exactly the same. The Model S 100D will increase by $5,000 to $97,500 and the P100D will increase by $5,500 to $140,000.

With its 335 miles rating, the Model S 100D sits 20 miles above the Model S P100D.

The company has confirmed that next week it's going to be implementing slight price increases to its higher end 100D and P100D models but it expects the average selling price to remain nearly exactly the same.

Watch Lorde Debut New Song 'Sober' at Tiny Pre-Coachella Gig
North Korean test missile explodes on launch