Tesla (NASDAQ:TSLA) has made significant changes to its pricing strategy, with a fresh round of price cuts for the Model S and Model X in the United States. These price reductions, ranging from 15% to 19%, apply to all trim levels of these electric vehicles.
Just a couple of weeks ago, Tesla introduced the standard range versions of the Model S and Model X, starting at $78,490 and $88,490, respectively. However, these base models are no longer available, as the latest price adjustments have positioned the larger-battery versions of the Model S/X with lower starting prices compared to their smaller-battery counterparts before the cuts.
Now, the base models of the Model S and Model X are priced at $74,990 (a 15% decrease from the previous $88,490) and $79,990 (an 18.8% drop from $98,490), respectively. Additionally, these base models now come with larger batteries, resulting in improved estimated EPA ranges of 405 miles for the Model S and 348 miles for the Model X, up from 320 miles and 269 miles, respectively. It’s important to note that these vehicles’ hardware remains unchanged.
In another customer-friendly move, Tesla has made all colors available at the same price, eliminating the need for buyers to make trade-offs between color choices and prices.
Furthermore, the price reduction for the Model X has made it eligible for a $7,500 U.S. Federal EV Tax Credit. This development is due to the Inflation Reduction Act’s pricing cap, which sets the threshold at $55,000 for cars and $80,000 for trucks and SUVs. Previously, both the Model S and Model X exceeded this cap, but the price drop now positions the Model X below the specified SUV price threshold. This means that certain qualified buyers can now acquire a Model X for a lower price than a Model S, provided they opt for the base model.
Tesla has also lowered the price of its Full Self-Driving software, reducing it by $3,000 from the previous $15,000 for U.S. customers who make an upfront purchase.
Additionally, the Plaid versions of both models have seen their prices decrease to $89,990 from $108,490. In China, Tesla is implementing a roughly 7% price reduction for both Model S and Model X.
In other Tesla news, the company has unveiled a refreshed version of its Model 3 with enhanced features. Interestingly, in China, this upgraded Model 3 comes with a price tag of approximately 12% higher than its predecessor. The improvements include a longer-range battery and a touchscreen system that allows passengers to adjust comfort settings and entertainment options.
Meanwhile, the National Highway Traffic Safety Administration (NHTSA) is nearing the completion of a lengthy investigation into safety concerns related to Tesla’s driver assistance systems. This investigation was initiated following a series of accidents involving Tesla vehicles.
Just last week, Tesla found itself facing a federal probe regarding allegations that it intentionally provided misleading information about its electric vehicle battery ranges to benefit Elon Musk, the CEO of Tesla. Musk has since denied these claims.
Featured Image: Unsplash @ Reet Talreja
Author Faith Yakubu 
