Tesla Launches Cheaper, Lower-Range Model S and Model X
SUV has a range of about 269 miles on one charge, less than the 348-mile range on the regular version. Tesla has cut prices for its U.S. vehicles multiple times this year in a bid to stoke demand in a competitive market.
Chief Executive Elon Musk suggested the January price drops fueled buyer interest. Some of the price cuts ensured its models cost less than the threshold to qualify for a federal tax credit. Tesla also made price adjustments in China this week.
The EV seller dropped prices by up to 4.5% for two versions of its Model Y car and is offering an insurance subsidiary on some of its new Model 3 vehicles. Texas-based Tesla sells vehicles directly to consumers without going through a dealership. The company routinely adjusts prices online.
Tesla generally has less pricing transparency than traditional automakers that suggest prices to dealers. Tesla, the world’s top EV seller, cut vehicle prices after a difficult 2022. The company last year posted its worst stock performance ever and fell short of its vehicle delivery targets.
However, Tesla has reported a surge in deliveries this year after the price adjustments. Some carmakers followed and lowered their prices. Traditional auto companies have broken into the EV market but have struggled to gain traction.
General Motors said it would phase out its first mainstream EV, the Chevrolet Bolt, at the end of the year and roll out a new version. Ford dropped the price of its electric Mustang Mach-E in January and later said it expected to lose $3 billion on its electric-vehicle business this year. A Ford spokesman said Tuesday that it was scaling EV production this year and reducing prices to make its electric cars more accessible.
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