Tesla launches cheaper versions of Model S and X with shorter ranges

Tesla, the electric vehicle maker, has launched two cheaper versions of its Model S sedan and Model X SUV in the U.S. with shorter driving ranges, according to its website on Monday.

The move is part of the company’s strategy to lower costs and boost sales growth amid competition and economic uncertainty.

The new S and X “standard range” models are priced at $78,490 and $88,490, respectively – about 10% lower than the previous lowest-priced models – and are available for delivery between September and October 2023. The new models have a “pearly white” exterior and an all-black interior as standard, with other colors costing extra.

The new Model S has a driving range of up to 320 miles, lower than the basic and performance, plaid versions that offer up to 405 miles and 396 miles, respectively. The new Model X SUV has range of up to 269 miles, well below its basic and performance, plaid versions that offer up to 348 miles and 333 miles, respectively.

Tesla did not immediately respond to a request for comment on the new versions of the models.

The company has slashed prices in the U.S., China and other markets since late last year, and has offered other incentives to reduce inventory. The company on Monday cut prices in China for its Model Y long-range and performance versions, sending shares lower on concerns of further pressure on its profit margins.

The company is also preparing for the first deliveries of its delayed Cybertruck and working to complete a plant in Mexico dedicated to a mass-market EV that will be the basis for a robotaxi.

Tesla’s S and X models are the company’s oldest offerings, introduced in 2012 and priced at a premium compared to the Model 3 sedan and Model Y crossover vehicles. The company delivered 19,225 Model X and S vehicles in the second quarter of this year, up from 16,162 vehicles last year.

Tesla cuts Model Y prices in China amid falling sales

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