Less range and a lower price. In the United States, Tesla has reiterated the Standard versions of the Model S and Model X. Both versions cost more than 10 000 dollars less than the Long Range models, which were already discounted significantly this year as part of Tesla’s price war.
Selling the more prominent models is the most daunting task for the American EV maker, as these only represent 4% of registrations within the brand’s range.
A series of measures are under trial to keep the models interesting and financially viable, from scrapping the right-hand drive version to lowering the ticker price to 10% since the beginning of the year. Furthermore, three years of free supercharging is included.
Same battery pack
The latest incentive is the return of Standard versions. These shorter-range models (515 kilometers, down from 651 kilometers for the S) cost 10 000 dollars less. The base price for the Model S now starts at $79 880, and $89 990 for the Model X.
As the higher positioned Long Range models, dual motor technology is still featured, while the Plaid version (costing $20 000 more) has three electric motors for optimum performance.
The Model X in Standard guise offers 433 kilometers of range. The battery pack for both models hasn’t been changed, though. It is a 75 kWh unit with 16 modules.
Tesla has restricted the pack for these base versions by software. Though not on offer anymore, customers could upgrade these packs in the past by a buyer’s premium. It is not known whether this option will also return.
Over in China, Tesla is boosting incentives on the Model Y and 3. With sales from these cars at their lowest, following a price war in the region and growing competition, the tariffs are adjusted downward by 4% on the compact SUV, except for the base version, which remains unaltered.
For the sedan 3, which is believed to be replaced anywhere soon by a revamped version, the company is offering an insurance subsidy worth RMB 8 000 (€1 000) for Chinese customers buying entry-level stock cars. This is a new incentive from the car manufacturer.
These moves could reignite the spiral of price cuts plaguing the Chinese auto market since the end of last year when Tesla kickstarted the underbidding. After an initial sales increase, the effect abided when more and more car makers joined the race, eventually leaving the customer hesitant.
The Chinese Association of Automobile Manufacturers (CAAM) tried to intervene with a gentleman’s agreement, signed by 16 carmakers, to blow off some of the heat being built up. But the clause mentioning “disrupting market fair competition order with abnormal prices” was removed two days after the signing. Officials opposed it, stating that price wars aren’t irregular market behavior in a nation’s economy.