Interesting bit found in Tesla's latest blog update (highlights are mine) :
"Last quarter, we introduced two new Model 3 variants with more competitive pricing than ever before – Standard and Standard Plus. Since then, Standard Plus has sold at more than six times the rate of Standard, far exceeding our expectations.
Given the popularity of the Standard Plus relative to the Standard, we have made the decision to simplify our production operations to better optimize cost, minimize complexity and streamline operations. As a result, Model 3 Standard will now be a software-limited version of the Standard Plus, and we are taking it off the online ordering menu, which just means that to get it, customers will need to call us or visit any one of the several hundred Tesla stores. Deliveries of Model 3 Standard will begin this weekend.
Its range will be limited by 10%, and several features will be disabled via software (including our onboard music streaming service, navigation with live traffic visualization, and heated seats). Similar to other software-limited vehicles produced in the past, Standard customers will have the option to upgrade to a Standard Plus at any time. Similarly, anyone who has already bought Standard Plus and wants to convert to Standard is welcome to do so, and we will provide a refund for the difference in cost."
Tesla invents software defined product segmentation
"Model 3 Standard will now be a software-limited version of the Standard Plus" and this will be studied and taught in Business Schools as a profound shift in goods production and marketing.
Such move limits the complexity and, to an extent, production operations costs while allowing for future upgrades or - in some cases - downgrades. Redefining standard as a "limited" version of a higher value product is also an interesting case.