Daniel Sparks, The Motley FoolMotley FoolJanuary 11, 2019, 4:01 PM GMT. Tesla may have put off these changes in 2018 as it focused on its Model 3 production ramp. Second, the Model S and Model X still use Tesla's older 18650 battery cell form factor, despite management's admission that its newer 2170 cells, used in the Model 3, have higher energy density. Perhaps the electric-car maker is finally ready to bring its latest battery technology to the Model S and Model X. While eliminating lower-cost versions of the two vehicles could help their gross margin, demand would have to remain at current levels -- about 100,000 units per year for Models S and X combined. And without any follow-up enhancements or changes to current Model S or Model X cars -- even something as simple as improved range or lower prices for 100 kWh versions -- demand for the two vehicles could suffer after the 75 kWh Model S and Model X are no longer available. While we can't be certain, new Model S and Model X variants -- or at least more price cuts -- are likely on the horizon.
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Jan 18, 2019