Tesla Introduces Cheaper Models as Prices are Slashed in China
BERN, Switzerland – Tesla has announced the release of new standard range Model S and Model X cars in the United States, priced cheaper than their previous versions, according to the automaker’s website. The new prices for the Model S and Model X are $78,490 and $88,490, respectively.
This move comes after Tesla recently cut prices in China for its Model Y long-range and performance versions. The price cuts have raised concerns about the impact on the company’s profit margins, leading to a decline in shares.
Tesla has been reducing prices multiple times in various markets since late last year. The company has also offered incentives to reduce inventory, aiming to stay competitive and shield itself against uncertainty in the global economy.
In the second quarter, Tesla delivered 19,225 Model X and Model S vehicles, an increase from the 16,162 vehicles delivered during the same period last year.
These developments highlight Tesla’s efforts to adapt to changing market dynamics and meet customer demands. By introducing cheaper models and cutting prices in China, the company aims to stay ahead in the rapidly evolving electric vehicle industry.
Reporting by Mrinmay Dey in Bengaluru; Editing by Rashmi Aich and Muralikumar Anantharaman