Tesla launches more affordable variants of Model S and Model X in US

Tesla has recently unveiled budget-friendly editions of its Model S sedan and Model X SUV in the United States, featuring slightly shorter driving ranges, according to information available on the automaker's official website. 

This move underscores Tesla's ongoing commitment to reducing expenses and amplifying sales growth.

The new "standard range" versions of the S and X models are priced at $78,490 and $88,490, respectively, which translates to a roughly 10 per cent reduction from the previous lowest-priced models. These offerings are slated for delivery between September and October 2023.

The entry-level pricing applies to vehicles adorned with a "pearly white" exterior and a fully black interior. Opting for different colours incurs additional charges.

Shorter driving range

In terms of driving range, the new Model S can travel up to 320 miles (515 km), which is slightly shorter compared to the basic and performance-oriented plaid versions, offering ranges of 405 miles and 396 miles, respectively.

Tesla Model X | Image credit: Tesla

Meanwhile, the new Model X SUV boasts a range of up to 269 miles, distinctly lower than its basic and performance-oriented plaid counterparts, which provide ranges of 348 miles and 333 miles, respectively.

Tesla has not provided immediate feedback in response to inquiries regarding these new versions of their models.

Tesla lowering the price bracket

The Texas-headquartered automaker has consistently reduced prices across various markets, including the United States and China, since late last year. These pricing adjustments, along with other incentives, were aimed at managing inventory levels and countering competitive pressures and economic uncertainties.

Tesla Model S | Image credit: Tesla

As of Monday, Tesla decreased prices for its Model Y long-range and performance editions in China. This decision prompted concerns about potential impacts on the company's profit margins, leading to a drop in share prices.

These recent developments are unfolding as Tesla prepares for the initial rollouts of its long-awaited Cybertruck and concurrently progresses with the construction of a mass-market electric vehicle plant in Mexico, which will form the basis for a robotaxi.

Tesla's Model S and Model X models are part of the company's original lineup, introduced back in 2012. They have been positioned as premium offerings compared to the more budget-friendly Model 3 sedan and Model Y crossover vehicles.

In the second quarter of this year, Tesla delivered 19,225 units of the Model X and Model S, reflecting an increase from the 16,162 vehicles delivered during the same period last year.

(With Reuters inputs)