- Tesla introduced two versions with lower specifications of its less popular electric cars, Model S and Model X, in the United States and Canada, as it reduced the price of new units by about $10,000 per car, as competition intensified. The cheaper models will have less range and slightly slower acceleration than their base counterparts. The price of the Standard Range sedan, Model S, is about $78,490, while the SUV, Model X, with lower specifications, costs $88,490, according to the company's official website.
- This approach aims to attract a wider range of potential buyers. Lowering prices and presenting more affordable versions also serve as strategies for expanding market presence, even though Tesla could potentially compromise profit margins to achieve increased sales volume. In a recent development, Lucid, a competitor to Tesla, reduced the prices of its base Air EV sedan by $5,000 to $82,400. It's possible that Tesla's introduction of a "Standard Range" model is a response to this price adjustment by Lucid.
Why it matters
The fact that Tesla is introducing new trim options and potentially responding to price cuts from its competitors indicates the intense competition within the electric vehicle (EV) market. As other companies like Lucid are lowering prices, Tesla's response reflects its efforts to maintain its competitive edge and market leadership.