Tesla launched ‘budget’ variants of its Model S sedan and Model X SUV in the US on Monday that cost $10,000 less – but the slashed price comes at a cost.
The new S and X ‘Standard Range’ models are now priced at $78,490 and $88,490 but will come with less range and power.
The Model S is 410 miles, but the cheaper version has 320, and the Model X loses 79 miles, leaving it with 269 miles on a single charge.
While both models will have the same batteries and motors as their higher-ticketed counterparts, the software was to limit specific features and upgrades.
The Elon Musk-founded company hopes the move will increase sales as high borrowing costs hamper demand for expensive electric vehicles.
The electric vehicles feature 20 percent less range – dropping the Model S from 410 miles to 320, and the Model X loses 79 miles, leaving it with 269 miles on a single charge.
Susannah Streeter, head of money and markets, Hargreaves Lansdown, said in a statement: ‘The idea is to appeal to consumers who are keen for the badge and the EV experience but might be put off by the higher price tag compared to competitors.’
Along with reduced range, the vehicles will also have less power.
The 0-60 mph acceleration is listed at 3.7 seconds and 4.4 seconds for the new Model S and Model X versus the other models’ 3.1 seconds and 3.8 seconds.
Industry experts have also said the Standard Range vehicles will not receive firmware upgrades to access more range or performance in the future.
The new pricing could also be in response to more EV makers moving into the US market, such as Lucid, which lowered its Air Pure to $83,900.
The 22023 Porsche Taycan starts at $86,700 and Mercedes-Benz’s EQE Sedan starts at $74,900.
The new S and X ‘Standard Range’ models are now priced at $78,490 and $88,490
The new pricing could also be in response to more EV makers moving into the US market. The 22023 Porsche Taycan (pictured) starts at $86,700
However, Tesla in July announced record car deliveries in the second quarter of the year after US business was bolstered by federal tax credits for electric vehicles.
The company delivered 446,140 cars worldwide in the three months leading up to June, outdoing its own prediction of 445,000.
It marked an 83 percent increase in sales from last year when Coronavirus restrictions hampered production in China.
Sales in the US have benefited from a federal tax cut imposed on electric cars by the Government in April.
The scheme – designed to accelerate America’s shift away from gas cars – means motorists can claim up to $7,500 back in tax credits when buying eco-friendly vehicles.
Only ten models – including plug-in hybrid cars – are eligible for the full sum. But a further seven entitle buyers to $3,750.
Among those to benefit from the full discount are the Tesla Model 3 and Tesla Model Y, which retail for around $41,990 and $56,990.
But the generous cut means a Tesla Model 3 is now cheaper than a Toyota Camry in California.
The all-electric vehicle starts at $40,240, but the rebate – combined with another California tax rebate of $7,500, depending on income and other requirements – knocks it down to $25,240.
Meanwhile, Japanese-made Camry lists at $26,320 or higher.
According to the latest figures, the Model 3 and Y accounted for almost all – 446,915 – sales in the year’s second quarter.
