Tesla Model S and Model X Price Cut News: Why These Expensive EVs Are Now Cheaper
Tesla is cutting the prices of its most expensive electric vehicles (EV) beginning this September. The Model S and Model X are now discounted because of the latest developments in the production line.
The carmaker reportedly made improvements to the 100 kWh batteries that power the EVs. With a more efficient battery, production cost for these vehicles will be significantly reduced.
A spokesperson confirmed that the Model S 100D will now cost $94,000 (originally $97,500) and the Model S P100D will now be priced at $135,000 (originally $140,000). On the other hand, Model X 100D will have a $96,000 price tag (originally $99,500) and Model X P100D will cost $140,000 (originally $145,000).
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"Tesla is passing cost efficiency improvements of approximately 3% in 100 kWH pack production through to customers," the spokesperson said.
The price reduction will put the vehicles under the same price range last April or even February. The difference, however, is that the Tesla models will now be packed with a more powerful tech on board.
The slash-off also follows the price cut of the Model X 60D to $74,000 last July. Observers note that this could indicate an emerging pattern in the EV market. With technological improvements, Tesla and other carmakers could offer more affordable electric-powered cars in the future.
Tesla has pushed the improvement of its vehicles' lithium-ion batteries since the production for the Model S and Model X ramped up. The company is also building its giant factory in a site in Nevada, which should help drive down production cost even further. This factory is expected to be fully operational in 2020.
Tesla launched the Model S in 2012 and has four versions: 75, 75D, 100D and P100D. The company launched Model X in 2015 with 60D, 70D, 75D, 90D, 100D, P90D and P100D versions.
Tesla is owned by SpaceX CEO Elon Musk.
