Tesla will discontinue its cheapest Model S option on Sunday (TSLA)

Tesla Model S

Tesla will officially discontinue its cheapest Model S option on Sunday, a source familiar with the matter confirmed to Business Insider.

Tesla will no longer offer the Model S 75 with rear-wheel drive after Sept. 24. The move will trim Tesla's Model S lineup to include the 75D, 100D, and P100D, which are all dual-motor all-wheel-drive sedans.

It makes sense that Tesla would want to do away with the option now that production for the Model 3 is underway. The Model 3 is Tesla's first mass-market car and was always set to replace the base Model S as the company's cheapest vehicle.

Tesla is currently only producing Model 3 vehicles with rear-wheel drive and won't release the all-wheel-drive dual-motor cars until later.

Still, it may be disappointing to some customers who were hoping to purchase the baseline Model S, which starts at $69,500, rather than wait over a year for a Model 3.

The Model 3 is certainly cheaper with a base price of $35,000, but options many may consider necessary will bump that number to the mid-$50,000 range. Naturally, which vehicle is the best option depends on the buyer, but the debate will be moot starting Sunday.

The move shouldn't come as a complete shock. Tesla confirmed to Electrek in July that it would discontinue the base Model S, but didn't provide a timeline. This also isn't the first time Tesla has reduced its number of offerings; the electric car maker discontinued the mid-range 85-kWh Model X and rear-wheel drive 90-kWh Model S in early 2016.

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