With perhaps a focus outside the US to more affordable, emerging markets, Tesla is now making it easier for customers to get their hands on its vehicles without burning too large a hole in their pockets. The automaker unveiled new variants of its Model S sedan and Model X sport utility vehicle – Tesla’s oldest vehicles – targeting customers seeking lower costs and shorter driving ranges. In short, the “Standard Range” version of both the Model S and Model X are back, and are here to stay.
Priced at $10,000 less than their predecessors, these more-affordable variants cater to price-sensitive consumers looking for an economical entry point into the Tesla experience, as per the company’s official website. The Standard Range Model S starts at $78,490, providing a driving range of up to 320 miles. Similarly, the Standard Range Model X is priced from $88,490 and offers a range of up to 269 miles. These lower prices aim to attract a broader range of potential buyers.
This marks a downgrade from the 405 miles of range that came for the Model S, along with the price tag of $88,490. For the Model X, it came at $98,490 and offered 348 miles of range. The product pages of the Model S and Model X state that the Standard Range trim weighs the same amount as the extended range option – which likely means that the same battery pack is present in the vehicles. Overall, the starting price of the Model S has dropped by 25% (or $26,500) since the beginning of the year, while the same for the Model X amounts to a drop of 27% (or $32,500).
Price cuts are not a new approach to the EV automaker. Tesla has, for quite some time, maintained a dynamic pricing approach, periodically adjusting prices to align with market demands and to counter competitive pressures. This strategy has enabled it to maintain robust sales growth, even if it means sacrificing some profit margins. In the second quarter of the year, Tesla clocked a total of 479,700 vehicles produced and 466,140 vehicles delivered.
In fact, it has introduced price cuts across several of its markets globally over the past 12 months, and earlier this week, it slashed the prices of its Model Y Long-Range and Performance versions in China owing to a drop in sales in the region.
The announcement and further development of more affordable EVs from Tesla also point to a renewed push within the company to look for pastures outside the US and China. India is one such market where Tesla is now making serious efforts to establish a manufacturing base as well as a sizeable market share. Elon Musk had recently met Indian PM Narendra Modi in later’s state visit to the US in June, post which, the company has moved rapidly to explore manufacturing investments and set up dedicated offices.