Tesla has introduced new, more budget-friendly versions of its Model S sedan and Model X SUV in the U.S. and Canada. These new models offer a lower price point but come with a trade-off: a shorter driving range. Deliveries are slated to commence next month.
The new “standard range” Model S has a starting price of $78,490 and boasts a range of up to 320 miles (515 kilometers). This is significantly less than the higher-priced dual-motor and tri-motor Plaid versions, which offer ranges of 405 miles and 396 miles, respectively.
The new Model X is priced at $88,490 and provides a range of 269 miles (433 kilometers). This, too, falls short of the 348-mile (560-kilometer) range offered by its more expensive counterpart.
While both new models utilize the same battery and motors as the dual-motor variants (which cost $10,000 more), their performance and range are software-limited. This was confirmed by a Tesla sales representative.
Tesla hopes these lower price tags will attract first-time electric vehicle (EV) buyers who may have been previously deterred by the higher cost of EVs compared to gasoline-powered alternatives.
This strategic move follows several rounds of price reductions across Tesla’s model lineup. This is part of a broader effort to maintain robust sales in the increasingly competitive EV market.
In its most recent financial report for the quarter ending June 30, Tesla reported record global deliveries of 466,140 vehicles, exceeding Wall Street expectations by approximately 20,000 units.
In 2022, the Texas-based automaker delivered over 1.3 million vehicles globally, solidifying its position as the leading EV manufacturer in the U.S. However, it faces mounting competition in China, its second-largest market, where domestic automakers like BYD have a substantial market share.
Tesla’s CEO hinted at potential further price cuts in July, citing pressure on consumer spending due to global economic instability. However, at the time, he made no mention of these new Model S and Model X variants.
