Tesla boosts range, power and price of low-end Model S

DETROIT – Electric car maker Tesla Motors is going after mainstream luxury car buyers by adding all-wheel-drive and more range and power to the base version of its only model.

But the added features at the low end of the Model S lineup will come with about a 7 percent price increase, to $75,000 for those buying the cars. The base lease price will rise to $838 per month from $796 for 12,000 miles per year.

As of Wednesday, Tesla will stop selling the old base Model S called the 60. The $70,000 rear-drive car with a 380-horsepower motor could go 208 miles on a single charge and from zero to 60 mph in 5.9 seconds.

The new all-wheel-drive 70D can go a government-certified 240 miles per charge, has 514 horsepower and can go from zero to 60 in 5.2 seconds. Buyers get free access to Tesla’s network of quick-charging stations and other standard features.

CEO Elon Musk said with a $7,500 federal tax credit that takes the price to $67,500, plus tax credits in some states, the new version is price-competitive with BMW’s midsize 5-Series, or the Mercedes E-Class when you add in gas savings. BMW’s 5 Series starts around $50,000, while the E-Class starts at close to $52,000.

He said Tesla needed all-wheel-drive to appeal to luxury buyers, especially in colder climates such as the Northeast, where most luxury cars are sold. About 58 percent of the luxury car market in the U.S. is all-wheel-drive, according to Kelley Blue Book.

“It’s also good in warm climates where there’s heavy rain or slippery roads for any reason,” Musk said.

Tesla’s next vehicle, the Model X SUV due out late this year, will be offered with similar features at the low end of the lineup, Musk said. The company also is planning a $35,000 mainstream car called the Model 3 with a 200-mile range that’s due out in 2017.