Tesla Unveils Significant Price Drops For Model S And Model X

(RTTNews) - Tesla (TSLA) has once again made a major move in the electric vehicle market by announcing substantial price reductions for its Model S and Model X lineup. These price adjustments, ranging from 15 percent to 19 percent, have been applied not only in the United States but also in global markets, marking a notable shift in Tesla's pricing strategy.

The most significant change is the discontinuation of the recently introduced Standard Range version of the Model S and Model X, priced at $78,490 and $88,490, respectively. However, this removal has been accompanied by sweeping price cuts for all other Model S and Model X trim levels. As a result, the base price for the higher-capacity battery versions of both vehicles has dropped significantly, making them more attractive to potential buyers.

Today, customers can acquire a Model S for a base price of $74,990, representing a $3,500 reduction compared to the previous starting price. Similarly, the base price for the Model X now stands at $79,990, reflecting an impressive $8,500 price cut from its previous cost.

Another notable improvement is that the "base model" now includes the larger battery, resulting in extended estimated EPA ranges of 405 miles for the Model S and 348 miles for the Model X. In contrast, the now-retired Standard Range model offered 320 miles of range for the Model S and 269 miles for the Model X. Importantly, this change is not accompanied by any hardware alterations, as the Standard Range model had the same battery capacity, only limited by software.

Furthermore, Tesla has made a customer-friendly move by including all paint colors in the base price, providing buyers with more freedom to personalize their vehicles at no additional cost.

In an interesting turn of events, Tesla's price adjustments have also made the Model X more attractive in terms of federal tax incentives. Due to changes in the US Federal EV Tax Credit under the Inflation Reduction Act, certain buyers may find that the Model X is now more affordable than the Model S, especially in its base trim.

Tesla's latest price reductions have not only pleased potential buyers but also sparked a competitive response in the electric vehicle market, with other manufacturers following suit by either reducing prices or announcing more budget-friendly models.

These price changes are also extended to international markets, with similar reductions in prices for both the Model S and Model X across Europe and China.