Tesla (TSLA) will officially cease production of its cheapest Model S vehicle, the Model S 75 with rear-wheel drive, on Sunday, according to Business Insider.

The decision by the electric automaker will effectively trim the Model S lineup to include only the 75D, 100D, and P100D, all dual-motor, all-wheel-drive sedans.

The halting of its production follows Tesla's debut of its $35,000 Model 3, intended to bring electric vehicles to the masses. The Model 3 now replaces the Model S 75 as the company's cheapest vehicle option.

Shares of Tesla were sinking nearly 2% in midday trading on Thursday.

Watch: Tesla's Elon Musk is All Jokes as the Model 3 Accelerates Into 'Production Hell"


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