Tesla rolls out lower priced variants of Model S and Model X in the U.S.

August 15, 2023 03:01 PM PDT | By Invezz

Tesla rolls out lower priced variants of Model S and Model X in the U.S. — Image source: Invezz

Why are new Tesla variants cheaper?

Both new variants are $10,000 cheaper than the regular models. The Model S Standard Range drives up to 320 miles on a single charge and the Model X Standard Range up to 269 miles.

In comparison, the conventional models deliver up to 405 miles and 330 miles to 348 miles, respectively.

The news arrives only a day after Tesla trimmed prices of its long-range and performance variant of the Model Y in China after vehicles it made locally in Shanghai saw a 31% sequential decline in sales in July.

Shares of the multinational automaker are now down about 20% in less than a month.

Why don’t investors like price cuts?

The launch of these new trim levels reiterate that Tesla Inc remains fully committed to being price-competitive to grow sales and gain market share as the number of its rivals continue to get bigger.

Earlier on Tuesday, VinFast – a Vietnamese electric vehicles manufacturer completed a SPAC merger to go live on Nasdaq.

But investors are not happy with its price cuts as they spell continued trouble for the company’s operating margins. Last month, Tesla said its gross profit margin contracted by 70 basis points (sequentially) in the second quarter as Invezz reported here.

On the plus side, Fisker signed an agreement with Elon Musk this morning that will enable its buyers to use Tesla’s network of superchargers.

The post Tesla rolls out lower priced variants of Model S and Model X in the U.S. appeared first on Invezz.

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