Please ensure Javascript is enabled for purposes of website accessibility

Tesla Motors Preparing to Release 75 kWh Model S

By Evan Niu, CFA - May 3, 2016 at 3:00PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

CARB potentially tips Tesla's hand with a 75D listing.

Refreshed Model S. Image source: Tesla.

What happened?
Electric-auto maker Tesla Motors (TSLA -0.57%) is seemingly about to introduce a new battery capacity for its Model S luxury sedan. The California Air Resources Board (CARB) has recently updated its listings that detail which vehicles are eligible for single-occupant carpool lane stickers, and CARB has included a 75D trim for the Model S. Tesla currently only offers 70 kWh and 90 kWh battery pack configurations for the Model S.

Does it matter?
This potentially upcoming change comes shortly after Tesla just refreshed the Model S, tweaking the front fascia and adding Bioweapon Defense Mode, among other new features. The refreshed models also came alongside a $1,500 increase in the base price, which now starts at $71,500 for a single-motor 70 kWh configuration.

If Tesla indeed bumps the minimum capacity from 70 kWh to 75 kWh, the real question will be whether or not Tesla subsequently increases the starting price even further to cover the added costs of the larger capacity. Model X was originally supposed to come with a 70 kWh capacity, but once Tesla opened up its Model X design studio to the public, it had increased the base model capacity to 75 kWh -- which added $3,000 to the base price (now $83,000).

Inevitably, Tesla will continue to increase battery capacities as costs continue to come down and energy densities improve. The company is widely expected to also release a 100 kWh battery soon. Including larger batteries at higher prices will benefit average transaction prices and could potentially provide margin tailwinds as well.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Tesla, Inc. Stock Quote
Tesla, Inc.
$695.20 (-0.57%) $-4.00

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/06/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.