Amid the intensifying competition within the electric vehicle landscape, Tesla Introduces More Affordable Model X & S Variants with Limited Range in the United States.
According to information available on Tesla’s official website, these vehicles’ newly launched budget-friendly iterations come at a reduced price point of $10,000 compared to their standard counterparts.
For the Tesla Model X, the Standard Range variant is now priced at $88,490, a notable reduction from the $98,490 price tag of the standard Model X. While the regular Model X boasts an impressive driving range of 330 to 348 miles and slightly quicker acceleration, the cheaper version offers a range spanning from 255 to 269 miles.
Similarly, the Tesla Model S Standard Range commences for $78,490, presenting a $10,000 saving from the standard Model S priced at $88,490. The economic Model S version offers a driving range of 298 to 320 miles, in contrast to the Model S’s original range of 375 to 405 miles.
Tesla’s strategic focus remains on capturing a larger portion of the market and enhancing vehicle sales, even if this entails sacrificing some profit margins. The latest earnings report for the June quarter indicated a 9.6% operating margin, the lowest within the last five quarters for the company, headed by the prominent entrepreneur Elon Musk.
Introducing more affordable vehicle options aligns with Tesla’s overarching strategy to remain competitive in pricing as the global automobile industry witnesses a surge in electric vehicle releases and ensuing competition.
Notably, Tesla has been consistently adjusting its pricing strategies within crucial markets. The company recently initiated price reductions for its Model Y and Model 3 offerings in China.
The Model S and Model X vehicles are two of Tesla’s earlier flagship offerings. This reduction in their pricing structure is seen as a strategic manoeuvre to rejuvenate interest in these models, especially as investors eagerly anticipate the commencement of mass production for Tesla’s Cybertruck in the upcoming year.