Trapped by chip shortages and R&D challenges, Tesla officially cancels Model S Plaid Plus

On Sunday, CEO Elon Musk tweeted new news Sunday that Tesla has canceled the Model S Plaid Plus, the most expensive model in its flagship sedan.

Previously, Tesla and Musk promised fans that their new Model S Plaid Plus version will provide drivers with 1,100 horsepower, a fully charged battery that can travel 520 miles, and in less than two seconds Accelerate from 0 mph to 60 mph.

On Sunday, Musk wrote on Twitter, “Model S Plaid Plus version is unnecessary.” The Plaid Plus version of Model S will provide 520 miles of cruising range and accelerate from 0 in less than two seconds. At 60 mph, this car was originally the fastest production car ever. He has more than 50 million fans.

In March of this year, Tesla increased the price of Model S Plaid Plus by $10,000, bringing it to approximately $150,000. According to CNET, the option to order Model S Plaid Plus was removed from Tesla's website in the last week or so of May.

The remaining high-end version of Model S Plaid is priced at about $119,900, equipped with a 390-mile range battery, with 1,020 horsepower and acceleration from 0 to 60 miles in two seconds, among other features.

Musk previously planned to hold the Model S Plaid "delivery" ceremony at the Tesla factory in Fremont, California on June 3. As the date approached, he postponed this to June 10, stating that the vehicle still needed "another week of adjustments."

Like other North American automakers, Tesla has been working hard to solve supply chain problems, especially the shortage of computer chips. The company recently canceled the radar sensors and lumbar support on the front passenger seats of the lower-priced Model 3 sedans and Model Y crossovers for North American customers due to price increases in the supply chain.

Although Musk said in the fourth quarter 2020 earnings conference call that production is in progress, it did not produce any higher-priced Model S or Model X cars in the first quarter of 2021.

By April 26, on Tesla’s next earnings conference call, Musk said: “In the first quarter, we experienced the most difficult supply chain challenge at Tesla. The parts supply chain encountered crazy difficulties. Obviously, we are disturbed by the shortage of chips. This is a huge problem."

On May 5, U.S. Secretary of Commerce Raymondo stated that the U.S. needs to return the supply chain, especially pharmaceuticals and chips. The U.S. should have 30% of chips produced locally and cooperate with TSMC to give priority to the development of automotive chips. In addition, the Chinese automobile market is growing rapidly. TSMC said on April 26 that it would invest US$2.8 billion in mainland China to increase the production capacity of automotive semiconductors. According to reports, TSMC will build a new production line in Nanjing to increase production capacity by 2023 to meet the growing demand for 28-nanometer automotive chips.

Musk also talked about the technical challenges of developing and figuring out how to make new versions of the Model S sedan and Model X SUV.

"The challenges encountered in the development of the Plaid Model S or Palladium project were more than expected. The latter is a new version of Model S and X. It has a modified interior and new battery pack, new drive unit and Internal electronics, and similar to an advanced infotainment system." He added: "In order to ensure the battery safety of the new S and X, we have carried out a considerable amount of development."