As competition in the market for electric vehicles intensifies, Tesla launched less expensive versions of its Model S and Model X vehicles in the U.S.
According to Tesla’s website, the less expensive models of both vehicles, introduced on August 14, cost $10,000 less than the standard model. Compared to the Model X, the Standard Range of the Model X starts at $88,490. The less expensive model offers a driving range of 255–269 miles. In comparison, the Model X ranges from 330 to 348 miles and has a slightly quicker acceleration speed.
Compared to the Model S’s starting price of $88,490, the Model S Standard Range is $78,490. The driving range of the less expensive Model S is 298 to 320 miles. In contrast, the range for the Model S is between 375 and 405 miles.
To the detriment of profitability, Tesla is still primarily concerned with expanding its market share and increasing car sales. The vehicle manufacturer reported operating margins of 9.6% in its June quarter profits, the lowest in at least the previous five quarters. As other automakers launch EVs and the competition intensifies, Tesla is focusing on being competitive in pricing as part of a larger initiative.
Tesla has consistently adjusted its prices in essential areas. On August 13, the business further reduced costs for its Model Y and Model 3 vehicles in China.
The Model S and Model X are two of Tesla’s older models, and the price reduction may be an effort to revitalize them as buyers wait for the company’s Cybertruck to go into mass production next year.