By Bernie Woodall / Reuters
Updated: June 9, 2016 11:17 AM ET
Tesla Model S
Courtesy Tesla

Electric carmaker Tesla Motors 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.

Read More: Tesla Plans to Sell 500,000 Cars in 2018

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.

Tesla in 2012 offered a 60 kWh Model S version priced starting about $70,000 but it was discontinued last year. Tesla says the two newer Model S versions offer more capabilities than the discontinued one.

Tesla has said it will produce between 80,000 and 90,000 electric cars in 2016 and that it can make 500,000 by 2018. Most of those are expected to be Model S cars. In the first quarter, Tesla produced 14,820 vehicles, of which 12,851 were Model S and 2,659 were Model X sports utility vehicle.

Tesla plans a new car, the Model 3, which is to be a more affordable sedan, starting around $35,000, to go to market in late 2017.

Tesla shares on Thursday morning were down 0.7% at $233.94.

You May Like