Tesla Drops its Lower-Priced Model S, X Variants, Cuts Price of Model 3 Sedan
【Summary】In order to streamline its pricing strategy and boost sales of its lineup, Tesla CEO Elon Musk announced that the lower priced variants of the Model X and S will be discontinued. Along with the changes, Tesla announced that it is adjusting prices across the board to simply options for customers.
Although Tesla built a record number of Model 3's in the past quarter, sales of the Model X and Model S sedan remain relatively flat, as customers opt for the lower-priced, mass-market Model 3 instead.
In order to streamline its pricing strategy and boost sales of its lineup, Tesla CEO Elon Musk announced that the lower priced variants of the Model X and S will be discontinued. Along with the changes, Tesla announced that it is adjusting prices across the board to simply options for customers.
The automaker on Tuesday limited variants of its Model X sport-utility vehicle and Model S sedan to either "Long Range" and the more expensive "Performance". It also trimmed the price of its now entry-level Long Range variants.
Tesla also lowered the starting price of its mass-market Model 3 slightly to $38,990.
The discontinuation of the standard-range variants, however, means a rise in starting prices to $84,990 for the Model X and $79,990 for the Model S, excluding potential buying incentives.
"To make purchasing our vehicles even simpler, we are standardizing our global vehicle lineup and streamlining the number of trim packages offered for Model S, Model X and Model 3," Tesla said in a statement to Reuters.
"We are also adjusting our pricing in order to continue to improve affordability for customers."
Chief Executive Officer Elon Musk tweeted on Tuesday that the price of Tesla's "Navigate on Autopilot" full self-driving option is increasing by around $1,000 on August 16. Currently the option costs an additional $6,000.
As part of the update, Tesla is bundling its high-performance "ludicrous mode" into the price of the top of the line Model S Performance and Model X Performance variants. Ludicrous mode previously cost $20,000 extra.
Earlier this month, Tesla said global deliveries of its three models in the second quarter of this year rose 51% from the previous quarter to a record 95,200 vehicles. The Model 3 accounted for about 80% of the total, which means that Tesla buyers are opting instead for the lowered priced sedan.
Tesla reported combined sales of 17,650 Model S and X vehicles in the second quarter and the company said it expected production and deliveries to continue growing in the third quarter.
In China, the world's largest market for electric vehicles and an critical market for the automaker, Tesla's latest price changes increased the starting price of its Model X to 790,900 yuan ($115,068) and Model S to 776,900 yuan.
Tesla is building a factory in Shanghai where it initially plans to build Model 3 cars to avoid import tariffs in the world's biggest auto market. The company began taking orders last month for those China-made versions, which have a starting price of 328,000 yuan (US$47,700). Tesla aims to have its new Shanghai factory operational by the end of the year.
After the automaker's announcement, Tesla's shares were down 1% at $250.92 in afternoon trading.
resource from: Reuters
Automakers Ford & General Motors are Allowing Rival Tesla to Lead U.S. EV Production Until at Least 2026, Data Indicates
Toyota is Developing a Hydrogen-Powered Fuel Cell Truck With its Hino Motors Unit
Electric Automaker Tesla is Forced to Reduce its Workforce By 75% at its Fremont, California Factory
Waymo, Others Stop Testing Self-Driving Cars on California Roads Due to the Coronavirus
Tesla Begins U.S. Deliveries of the Highly Anticipated Model Y
U.S. Automakers General Motors & Ford Instruct Employees to Work From Home Beginning Next Week Due to the Coronavirus
Volkswagen is Exploring Ways to Use its EV Batteries to Power the Grid
The Coronavirus is Disrupting Auto Manufacturing in Mexico and Europe as Parts Shipments From China Slow
- Chinese EV Startup NIO Partners with Xiaomi on Remote Car Smartwatch App
- Toyota’s New Hydrogen-Powered Mirai Sedan Could Become a Serious Alternative to Electric Cars
- Reservations Are Full for the First Edition of Ford’s Electric Mach-E Mustang-inspired Crossover
- Jaguar Land Rover Unveils Autonomous and Electric ‘Project Vector’ Shuttle Concept
- Uber Shares Surge 37% After its CEO Says the Ride-Hailing Giant Has $10 Billion in Cash to Weather the Coronavirus Crisis
- GM Holding Talks With NHTSA for Autonomous Cars Without Steering Wheels
- NHTSA Alters Safety Rules to Make Room for Self-Driving Cars
- BMW i3 Urban Suite Concept is a Miniature Luxury Car
- Self-Driving Semi-Truck With Plus.ai Technology Completes First Coast-To-Coast Trip
- Mercedes-Benz Testing Production Version of EQS in California