Tesla has introduced a cost-effective alternative for prospective buyers seeking a budget-friendly option with slightly diminished range capabilities. The “standard range” trim, previously discontinued in 2021, has been reinstated for the Model S and Model X, shedding $10,000 off the price while offering an EV range that is notably shorter.
Tesla, the renowned electric vehicle (EV) manufacturer, is known for its innovative approach to sustainable transportation. Over the past year, the company has made various adjustments to its vehicle prices in a dynamic market.
In its latest move, Tesla has rekindled the “standard range” trim level for its higher-end Model S and Model X, offering potential buyers an affordable option with a reduced range.
Reduced Prices and Range: Model Details
For those eyeing the Model S, the new offering starts at $78,490 and provides a range of 320 miles. Similarly, the Model X, with its standard range, begins at $88,490 and boasts a range of 269 miles.
These adjustments mark a reduction in both cost and range compared to the previously available extended range and high-performance Plaid kits.
The Technical Insight: Equal Weight, Different Range
Interestingly, the new Standard Range trim maintains the same weight as the extended range option. This suggests that the vehicles may share the same battery pack, with the range being limited through software.
It is possible that Tesla might provide the option for owners to unlock additional range after the initial purchase by paying the price difference.
Tesla’s Strategy: Navigating Price Adjustments
This is part of Tesla’s ongoing strategy to navigate the evolving EV market. Over the past year, the company has engaged in multiple worldwide price adjustments for its vehicles, leading to a shift in gross margins.
The Model Y and Model 3 experienced several price cuts, and even the higher-tier Model S and Model X saw reductions in their prices.
However, this move stands out as the first instance where Tesla has not only cut the price but also reduced the range to offer a more accessible price point.
As Tesla continues to adapt to market demands and financial dynamics, the reintroduction of the standard range trim for the Model S and Model X reflects the company’s commitment to making EVs more accessible to a broader range of consumers.
By providing lower-priced options, Tesla aims to strike a balance between affordability and sustainable transportation, ultimately contributing to the widespread adoption of electric vehicles.
