Why did Tesla lower the price on its Model X and S standard range electric cars?
Tesla has significantly reduced the prices of its Model X and Model S standard range electric vehicles, but the new cars will have shorter driving ranges.
Tesla is seeking to boost sales by launching cheaper versions of its popular Model S sedan and Model X SUV standard range electric cars. However, the $10,000 price slash on Tesla’s oldest models comes at the expense of the vehicles’ driving ranges- they can’t go as far as their predecessors on a single charge.
Tesla’s cheaper Model X and S: Lower price, shorter distance
The new S variant is now priced at $78,490, and has a driving range of up to 320 miles, lower than its more expensive versions that offered up to 405 and 396 miles.
The new Model X meanwhile now has a price tag of $88,490, and will be able to rack up to 269 miles, which is way below the capacity of the previous edition, which could go up to 348 miles.
Tesla has already brought down the prices of its cars in other countries such China and Canada, promoting the growth of its sales as it deprioritizes profit margins.
Both the new Model S and Model X will be equipped with the same battery and motors as their pricier versions, but their software will limit their performance and range.
Tesla said the latest models will be available between next month and October.
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Why did Tesla lower the price on its Model X and S standard range electric cars?
The company run by billionaire Elon Musk is offering the new options as it faces more competition in the electric car industry.
Last month, seven large car corporations announced plans to work together to build a network of electric vehicle charging stations in North America to compete with that of Tesla.
The network will be able to provide service to all electric vehicle drivers, including those with Teslas. The carmakers involved are BMW, General Motors, Honda, Hyundai, Kia, Mercedes, and Stellantis.