Tesla makes significant changes to Model 3 versions and nixes Full Self Driving option ordering

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by ObservationalHumor

So as of last night Tesla made some significant changes to the actual versions of the Model 3 that can be order going forward. They aren’t selling the LR version anymore and you need to get an AWD or Perf version for the biggest battery pack. There’s now a Medium Range version with a slightly smaller battery and slightly smaller price ($45,000 w/ 260mi EPA estimated range vs $49,0000 w/ 310mi range on the prior LR version).

Source:

Additionally the option to remove the FSD package has been completely removed. With Elon Musk stating it was because it was causing ‘confusion’.

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Source: electrek.co/2018/10/19/tesla-removes-full-self-driving-capability-package-confusion/

This is a pretty big shakeup, perhaps even more than Elon Musk buying $20M worth of stock. Naturally speculation is running rampant on both these issues. If LR demand has crashed, why it was removed if this about better segmentation, etc. And even more so on the FSD front with concerns over regulators potentially getting involved about Tesla taking money for a product they flat out haven’t been able to deliver in 2 years or alternatively concerns over upgrade costs for their new hardware and chip going forward.

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Obviously Q3 earnings have not yet been released and no real commentary has been provided on these changes. However these are significant items which will presumably have a substantial effect on margins going forward.

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