Tesla Motors Corp. (TSLA) is going all-out to boost sales and increase profits. 

The electric car company has cut the price of its Powerpack 2 inverter, which it released in September, by 10%, according to online publication Electrek. At the same time, it is also poised to increase the base price for its Model S60 sedan by $2,000 on November 22, the last day to get a Tesla before the end of the year. 

The simultaneous price increase as well as decrease is designed to attract large corporations as customers for its Powerpack 2 systems and induce customers to buy the Model S75. The Model S60, which retailed earlier for $66,000 will now cost $68,000. The move is expected to boost demand for the Model S75, which has a more powerful battery and greater range, and costs $6,500 more. 

Technically, the Model S60 and S60 D comes equipped with a 75KwH. However, a software upgrade, which cost $9,000, is required to activate the battery’s full capability. Given the price difference between the Model S60 and Model S75, it becomes cheaper for consumers to buy a Tesla Model S75 instead of spending more to upgrade capabilities.  

Based on Electrek’s analysis, Tesla’s price decrease for its Powerpack 2 inverter will bring down the cost of generating solar power per watt for large-scale installations. The publication calculated that the new price declines the price per watt to $398 per KwH from $445 in September, when the Powerpack 2 inverter was launched. It also pointed to the Palo Alto-based company’s recent agreements with electric utilities as a sign that the company’s new price is targeted at large projects. 

Tesla reported a successful third quarter recently with record deliveries for its electric cars. Another quarter with profits will boost the case for its merger with SolarCity Corp. (SCTY), which is up for vote on November 17. 

 

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