Tesla Discontinues Cheapest Model X, S Variants, Cuts Prices to Simplify Lineup

Tesla also lowered the starting price of its mass-market Model 3 to $38,990.

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By Reuters | Updated: 16 July 2019 14:22 IST

Tesla Inc has dropped the standard-range variants of its Model X and Model S from its product lineup and adjusted prices across its range, in a sales push that comes days after the U.S. electric vehicle maker reported record deliveries.

To simplify its offerings, the automaker on Tuesday limited variants of its Model X sport-utility vehicle and Model S sedan to "Long Range" and the more expensive "Performance". It also trimmed the price of its now entry-level Long Range variants.

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.

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Tesla also lowered the starting price of its mass-market Model 3 to $38,990.

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"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.

"We are also adjusting our pricing in order to continue to improve affordability for customers."

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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, underscoring the vehicle's role as the linchpin of Tesla's growth strategy.

The automaker said it expected production and deliveries to continue growing in Q3.

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In China, the world's largest market for electric vehicles, Tesla's changes on Tuesday pushed the starting price of its Model X to CNY 790,900 ($115,068) and Model S to CNY 776,900.

Tesla is building a factory in Shanghai where it initially plans to build Model 3 cars. It is taking orders for those China-made versions, which have a starting price of CNY 328,000.

© Thomson Reuters 2019

 

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Further reading: Tesla, Model X, Model S
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