Tesla, the world’s leading electric vehicle (EV) maker, has added two lower spec versions of its less popular Model S and X EVs in the US and Canada markets, slashing the price by $10,000 as competition intensifies.
The cheaper versions come with less range and slightly slower acceleration than the base models. The ‘Standard Range’ Model S sedan is priced at $78,490, while the lower spec Model X sport utility vehicle costs $88,490, according to the automaker’s website.
It was not immediately clear whether the lower spec, lower cost models would be rolled out in the Middle East or in other markets around the world.
The Model S and X account for a fraction of Tesla’s sales, making up less than 5% of deliveries in the second-quarter. Unlike the 3 and Y, which are eligible for a $7,500 US tax credit, the S and X receive no discounts, reducing their appeal.
Tesla popular in UAE fleets
In fact, the Model 3 is making great inroads in the GCC and UAE markets, including in public transport and taxi fleets. Dubai’s Arabia Taxi announced in April that it had inducted 269 units of the Tesla Model 3 to its fleet.
CEO Elon Musk in July said Tesla would have to keep lowering prices if interest rates continued to rise, and warned he was willing to sacrifice more margin to boost output and sales.
Tesla on Monday cut the price of its higher-spec Model Ys in China by $1,900, fueling concerns of a renewed price war in the hotly contested Chinese market.