Tesla (TSLA) Puts the Kibosh on 85-kWh Model S; Adds Degree of Separation from Model 3 - Global Equities
Global Equities is out with commentary on Tesla Motors (Nasdaq: TSLA) following news that the company will be discontinuing the Model S with an 85-kWh battery option.
Analyst Trip Chowdhry believes that the move should be viewed as a positive by investors, with Tesla now creating a degree of separation between the Model S and the upcoming Model 3.
Chowdhry noted:
- Model 3 could be 60kWh and less battery pack while Model S could be 70kWh and more Battery Pack
- And these kWh battery pack capacities between Model 3 and Model S will change over the period of time, while still maintaining the degrees of separation between the two product lines
The analyst also sees Tesla ending the Model 85S and 85D, in favor of Tesla Model 90S and 90D, as validation of operational efficiency that Tesla is able to continuously achieve.