Tesla unveiled cheaper versions of its Model S sedan and Model X SUV on Monday, offering shorter driving ranges to boost sales in the face of mounting economic pressures.
The new “standard range” Model S and Model X are priced at $78,490 and $88,490, a reduction of $10,000 from their predecessors, with deliveries expected between September and October. This move follows price cuts in both U.S. and international markets, aligning with CEO Elon Musk’s strategy to prioritize sales growth over profit margins during economic downturns.
The updated Model S has a maximum driving range of 320 miles, compared to the dual and tri-motor Plaid variants which offer up to 405 miles and 396 miles, respectively. Meanwhile, the new Model X can cover up to 269 miles on a full charge, a decrease from the pricier versions that reach up to 348 miles. Danni Hewson of AJ Bell warns that if the cheaper models compromise on quality, it could deter long-time Tesla customers. Tesla shares dipped 0.8% following the announcement, despite a near 95% surge earlier in the year.
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