The Strategist

Tesla discontinues cheapest versions of Model X and S

07/17/2019 - 10:50

Tesla announced a reduction in configuration of models S and X, as well as lower price for the budget Model 3. The company believes that these changes will help optimize the range and stimulate sales.

El monty
El monty
The standard configurations were removed from the five-door liftback S and X crossover lines: these models will now be available in more expensive models with more powerful batteries - Long Range and Performance. Thus, the prices for S and X will now start at $ 80 thousand and $ 85 thousand respectively.

The rejection of the standard versions of Model X and Model S means an increase in starting prices - up to $ 84,990 for the Model X and $ 79,990 for the Model S without taking into account potential incentives for buyers.

According to the manufacturer, the rise in prices will be offset by savings on gasoline (estimated at $ 9,875) and other preferences from owning and operating an electric car.

“To make the purchase of our machines even easier, we standardized the range of equipment and packages for the S, X and 3 models,” Tesla said in a statement. “We also revised our pricing policy to increase availability of our machines for consumers.”

Tesla also lowered the starting price for Model 3 by $ 1 thousand to $ 39 thousand. The company reduced the cost of Model 3 in China from 421 thousand yuan to 355,900 yuan ($ 51,780). As soon as the assembly factory of the company starts working in China, the price of the Model 3 will be reduced to 328,000 yuan. In China, Model X and Model S also became more expensive: 790 thousand and 776 thousand yuan, respectively.

Recall that Tesla completed the third and fourth quarters of 2018 with a profit, but in the first quarter of 2019, the manufacturer again suffered a loss and was forced to attract additional funding in the amount of more than $ 2 billion.

In Q2, the company was able to surpass its previous production and supply rates, which significantly surpassed analysts' estimates. Tesla also expects a strong third quarter.