Tesla’s Model S with a 500-mile range has been cancelled by Elon Musk

Elon Musk has cancelled his planned Tesla Model S Plaid+supercar, which was supposed to go on sale a year ago

Tesla is still working on a “Plaid” version of the vehicle. Plaid+ is being scrapped, according to Tesla CEO Elon Musk, since there is no need, as Plaid is just so wonderful.

However, Tesla has stated that the Plaid+ can travel more than 500 miles on a single charge, although the normal Plaid variant is rated at 390 miles. Both variants were to have three motors, rather than the two found in other Tesla top-end models. Plaid and Plaid+ will be able to accelerate from 0 to 60 mph in around 2 seconds, making them the fastest production cars ever, according to Tesla.

The Plaid+ was supposed to cost just under $150,000, which was $30,000 more than the original Plaid version. Last year, all versions of the Model S and the high-end Model X SUV combined accounted for only 11 percent of Tesla sales, with the lower-cost Model 3 sedan and Model Y SUV becoming the company’s mainstays. The Model S and Model X, on the other hand, are expected to have higher profit margins than the Model 3 and Model Y, making them crucial products in Tesla’s line-up.

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Problems in Tesla?

The delays in releasing new versions of the Model S and Model X, as well as the cancellation of the Model S’s highest-end model, could indicate that Tesla is having some issues.

Tesla’s stock fell marginally in premarket trade on Monday.

A redesign of a new version of an automobile typically takes production offline for a few weeks. Tesla, on the other hand, did not produce any Model S sedans or Model X SUVs in the first quarter of the year, and is only now releasing a revamped version of the vehicle.

The new Model S, which features a distinctive rectangle open steering wheel rather than the typical round steering wheel, was supposed to be unveiled on June 3rd. However, Musk stated last week that it would be pushed back to June 10 due to some last-minute changes.

The whole auto industry has been afflicted by a shortage of computer chips, which has forced manufacturers to close and automakers to divert their remaining supply of chips to their best-selling automobiles. Elon Musk warned investors about the scarcity of computer processors as a major concern in April.

Last week, Musk tweeted that growing raw material costs were causing Model 3 and Model Y prices to rise. The price of the top-of-the-line Model S and X, on the other hand, was not raised.

Ives said that at the high end, the Plaid+ had niche demand to begin with, but the chip scarcity has forced Musk & Co. to make some difficult production choices. Tesla’s stock has been bumpy in recent months, causing overall stress to the company.

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Musk did not specify which raw material prices were the source of the issues. In trade markets, the price of lithium, a major component of electric vehicle batteries, has more than doubled. Cobalt, another important battery element, has also risen sharply, though it has since fallen from a high early this year.

It’s unclear how much Tesla pays for the basic ingredients under its supplier agreement. The same is true for metals used in other parts of the car, such as steel, aluminum and copper, which have seen their values rise on public markets.

The unique name “Plaid” derives from director Mel Brooks’ 1987-Star Wars satire “Spaceballs.” When a ship enters hyperspace in “Star Wars,” the stars appear to turn into light streaks. The spaceship speeds up even further in Spaceballs, and the stars turn plaid.

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