Tesla (TSLA) revealed cheaper priced versions of its higher-end Model S and Model X vehicles, with an interesting twist.
On its website, Tesla now lists a Model S “Standard Range," as well as a Model X “Standard Range” version as well. Both are $10,000 less than the regular models on the website.
The new Model S Standard Range starts at $78,490, and has a 320mile range compared to 405 miles for the prior entry level trim, now known just as the “Model S.” The Model X Standard Range starts at $88,490 and has 269 miles of range, compared to the 348 miles for the regular "Model X."
Tesla from time to time releases different trims of its models, with range, power and features unique to different price points, in order to appeal to a broader swath of buyers. Price cuts and offering cheaper trims are also a way to gain market share, though Tesla may be sacrificing margins for volume growth. Just last week Tesla rival Lucid slashed prices of its base Air EV sedan by $5,000 to $82,400; Tesla may be introducing this “Standard Range” model in response.
The logic behind launching EVs with less range: smaller battery size, in order to bring costs down. But as first reported by Electrek, this may not be the case
According to Electrek, after noticing the Standard Range vehicles weighed the same as the longer range regular vehicles (suggesting identical battery size), advisors at Tesla Service Centers confirmed that the new Standard Range Model S and Model X are indeed range locked via software. When asked if Tesla planned to unlock the additional range via subscription or one-time charge in the future, Electrek received inconsistent answers.
On the face of it seems Tesla is taking the margin hit at this time to sell a cheaper Model S and Model X, and may recoup some of these costs in the future via a paid software update.
Tesla’s latest pricing move in the US market follows the company’s price cuts in China earlier this week, where the Tesla China reduced prices of its Model Y Long Range SUV and Performance versions, with the Long Range version getting the steepest price cut dropping by 4.5% to 299,900 yuan ($41,435).
Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on Instagram.
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