Tesla has reduced the price of two of its electric vehicles, the company has reduced the price of its entry-level Model S by $5,000 and entry-level Model X by $3,300.
The base 75 and 75D versions have had their prices dropped by $5,000 and $3,000 respectively, and the 90D has also had a price drop of $2,000.
New Pricing Structure
The cheapest Tesla that you can buy will now cost you $69,500. These new prices have come into force after the Model S 60, which previously cost $66,000, has been discontinued. This price reduction makes Tesla’s luxury electric vehicles more accessible to a broader range of consumers. The Model S 75, which now starts at $69,500, offers a range of approximately 249 miles on a single charge, making it a competitive option in the electric vehicle market.
Similarly, the Model X 75D, which now starts at $82,500, offers a range of about 237 miles. The Model X is known for its distinctive falcon-wing doors and spacious interior, making it a popular choice for families and those needing extra cargo space. The price reduction for the Model X 75D makes it a more attractive option for those considering a luxury SUV.
Strategic Price Reductions
Tesla has reduced the prices of these vehicles ahead of the launch of its cheapest car to date, the Tesla Model 3. The Model 3 is expected to start at around $35,000, making it Tesla’s most affordable vehicle yet. By reducing the prices of the Model S and Model X, Tesla aims to create a more distinct pricing gap between its luxury models and the upcoming Model 3. This strategy is likely intended to attract a wider range of customers, from those looking for a high-end electric vehicle to those seeking a more budget-friendly option.
The price reductions also come at a time when competition in the electric vehicle market is intensifying. Companies like Chevrolet, Nissan, and BMW are all offering electric vehicles at various price points, and Tesla’s price cuts could be a move to maintain its competitive edge. For example, the Chevrolet Bolt, which starts at around $37,495, offers a range of 238 miles, making it a direct competitor to the Model 3. By lowering the prices of its higher-end models, Tesla can better position itself against these competitors.
Additionally, the price reductions may help Tesla achieve its goal of accelerating the world’s transition to sustainable energy. By making its vehicles more affordable, Tesla can encourage more consumers to make the switch from gasoline-powered cars to electric vehicles. This aligns with the company’s broader mission of reducing carbon emissions and promoting renewable energy sources.
In conclusion, Tesla’s recent price reductions for the Model S and Model X are a strategic move to make its luxury electric vehicles more accessible and to prepare for the launch of the more affordable Model 3. These price cuts not only make Tesla’s vehicles more competitive in the growing electric vehicle market but also support the company’s mission of promoting sustainable energy. With these changes, Tesla continues to lead the way in the electric vehicle industry, offering a range of options to suit different needs and budgets.
Source The Verge
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