Tesla Introduces Lower-Priced and Reduced-Range Models of Model X and Model S in the United States
August 15, 2021 (Washington) – In a bid to expand its market share and compete in the increasingly competitive electric vehicle market, Tesla has announced the launch of less-range and cheaper versions of its popular Model X and Model S in the United States. The new variants come at a price point that is $10,000 lower than the regular models, offering a more affordable option for consumers.
On the Tesla website, interested buyers can now find a Model X with an estimated range of 432 kilometers priced at $88,490, whereas the standard version with a range of 560 kilometers was previously priced higher. Both models feature four-wheel drive capabilities, ensuring optimal performance and driving experience.
For those seeking a more powerful option, Tesla offers the Plaid version of the Model X, which includes a third electric motor. With a range of 535 kilometers, this model is priced at $108,490.
Similarly, Tesla has also introduced a reduced version of the Model S, which now boasts a range of 515 kilometers and costs $78,490. This reduced priced option is identical to the regular version, but comes at a significant discount. The Plaid version of the Model S will maintain the price of $108,490.
These new releases from Tesla align with the ongoing price war among major electric vehicle manufacturers in North America. Tesla has shown its willingness to reduce operating margins in order to gain a larger market share. In fact, the company’s operating margin for the second quarter of this year was 9.6%, marking the lowest achieved in the last five quarters.
Furthermore, Tesla has also recently cut prices for its Model 3 and Model Y in China, further demonstrating its commitment to remaining competitive in the global market.
While the announcement of these lower-priced versions of the Model X and Model S has generated some market reaction, with Tesla shares experiencing a decline of up to 2.30% in New York, the company remains optimistic about its ability to attract more customers with these more affordable options.
With the expansion of its product lineup and the continued dominance in the electric vehicle segment in the United States, Tesla aims to solidify its position as a market leader and maintain its success in the evolving automotive industry.