Tesla Motors Inc. (NASDAQ: TSLA) is on the cutting-edge of technology in the auto industry, and investors hang off the CEO’s every word (or tweet). The company has been known to make some nontraditional moves, but that really just feeds into its fascination. This most recent move of releasing an upgraded Model S seems to be paving the way for more technologically infused cars and stronger sales going forward. At first glance, this may be a revenue booster, but it is also raising the minimum price, and that could have an impact on its affordability.
The company began taking orders for its newly upgraded Model S on Wednesday morning. Ultimately this upgraded electric sedan will offer more features and an increased range.
But is that worth raising the price by $5,000 to $76,070? CEO Elon Musk believes so. As he said, “A slight price increase, but it’s a huge value increase.”
ALSO READ: Bracing for a New Product Line From Tesla, and Not a New Car
The new Model S 70D has a 70kWh battery pack and dual electric motors, with an increased driving range to 240 miles. The previous Model S 60 had a single electric motor with a 60kWh battery pack and a driving range of 208 miles.
Comparatively, the Model S 70D was rated with 514 horsepower, while the older Model S 60 has only 380 horsepower. The top speed for the new base 70D is 140 mph, compared to the previous model, which falls just below at 120 mph. In terms of acceleration, the new base model hits 60 mph in 5.2 seconds while the old model can make it in 5.9 seconds.
Among the features being added is all-wheel drive, which is now achievable with the increased horsepower from the dual motors.
Autopilot software will be an available feature as well for an additional $2,000. This software will allow the car to drive itself on the highway in control of both acceleration and steering.
In the first quarter of 2015 Tesla delivered more than 10,000 vehicles, on its way to the target number of 55,000 vehicle sales for the full year. Note that Model X sales will play into this number as well, but it is not expected to come to market until the third quarter.
Tesla has forecast that, for the full year, deliveries of its Model S and Model X will combine to trigger a 70% improvement over 2014.
ALSO READ: How Often Will the Tesla Self-Driving Car Crash?
In early trading Wednesday, shares of Tesla were up 2.1% to $207.51. The 52-week trading range is $177.22 to $291.42. The consensus analyst price target is $264.18.
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