When Elon Musk said there would be no Tesla Model AND Standard Range Plus, his excuse was that the range would be too low, below 250 miles. That must have frustrated many Tesla fans, but they can start to support this decision when they realize that it can be very beneficial to the company. Musk suggested that when he said in the 2020 second-quarter earnings call that he thought the minimum range for electric vehicles would now be 300 miles.
That was not the only thing he said that could concern other automakers willing to compete with Tesla. He also said 300 miles under the EPA cycle, meaning that the 300-mile WLTP ranges don’t count, got it, Volkswagen?
Musk’s exact words were these:
“Regarding passenger vehicles, I think the new range normal will be, in terms of the US EPA alone, about 300 miles. So I think people will really expect that as a number close to 300 miles as usual.
That is a standard expectation because it is necessary to take into account, for example, is it very hot outside or very cold? Or are you driving towards a mountain with full load? And is that people do not want to reach the destination with a range of 10 miles. They want some reasonable margins. So I think 300 will really be, or about 300 will be a new normal, let’s call it 500 kilometers, basically, approximately. “
Elon Musk does not speak of that as an acknowledgment of market demands. If Tesla were to sell a very affordable EV with 200 miles of range, people would buy it. What you’re doing is setting that range as a new normal, from Tesla’s cars. Should we call it “standard range”?
If that’s the case, killing the Model Y Standard Range Plus may be just a first step. Without a range upgrade like the one the Model S got, the Tesla Model 3 Standard Range Plus is next in line for early retirement, at least in the US Ironically, the Chinese model 3 with LFP batteries allegedly got a scope upgrade over imported from the US
If that happens, Tesla can boast of only selling cars with a minimum of 300 miles. It will then force other companies to offer at least that amount under the EPA cycle. It would embarrass Porsche for the Taycan 4S ‘203-mile EPA range with even more authority.
If you like it or plan to buy a Model 3 Standard Range Plus, pray for it. You can have your days numbered. At least if its standard range is not met very soon, the 300 mi Musk thinks they are the new normal.
Source: Tesla Q2 2020 earnings call via Motley Fool
