Tesla has unveiled new, more affordable trim options for its Model S and Model X vehicles, aiming to cater to shoppers seeking a shorter range at a reduced cost. The automaker has reintroduced the “standard range” trim level to its two premium models, resulting in a price reduction of $10,000 and a decrease of approximately 80 miles in the electric vehicle (EV) range.
Under this new configuration, the starting price for the Model S is set at $78,490, offering a range of 320 miles. Similarly, the Model X now begins at $88,490, with a range of 269 miles. In comparison, the previous starting price for the Model S was $88,490, providing a range of 405 miles, while the Model X was priced at $98,490, offering a range of 348 miles.
This particular trim option was discontinued by Tesla in 2021, as the company shifted its focus to exclusively offering extended range and high-performance Plaid kits.
Interestingly, the Model S and Model X product pages suggest that the new Standard Range trim maintains the same weight as the extended range alternative. This implies that both versions likely share the same battery pack, with the range being restricted through a software lock. It is possible that Tesla may provide an option for buyers to unlock additional range after purchase by paying the price difference.
This move by Tesla is part of a broader trend of global price adjustments made over the past year, contributing to a decline in gross margins. The automaker has implemented multiple price cuts for the Model Y and Model 3 during this period. Even the higher-end Model S and Model X received price reductions. What sets this latest adjustment apart is that it represents the first instance where Tesla has simultaneously reduced both the price and the range to offer more budget-friendly options.
In a constantly evolving market, Tesla’s decision to offer vehicles with shorter ranges and lower prices demonstrates the company’s commitment to adapting its offerings to meet the diverse needs of consumers. As the EV landscape continues to evolve, such strategic moves could position Tesla to remain competitive and capture a broader segment of the market.
