Tesla (NASDAQ:TSLA) introduced more affordable versions of its Model S sedan and Model X SUV in the United States on Monday. These new variants offer shorter driving ranges and are aimed at boosting sales, as elevated borrowing expenses are currently affecting the demand for pricier electric vehicles. The lower-cost versions of both vehicles launched Monday are $10,000 less than the regular model, according to Tesla’s website.
Tesla has already cut prices for its vehicles in the U.S., China, and other markets, several times this year. The company is focusing more on boosting sales than on keeping profit margins high, even though their profit margins are still better than those of many other carmakers.
The Model X Standard Range is priced at $88,490, while the Model X starts at $98,490. The more affordable variant offers a driving range between 255 miles and 269 miles. In comparison, the Model X provides a range of 330 miles to 348 miles, along with slightly quicker acceleration.
As for the Model S Standard Range, its starting price is $78,490, in contrast to the $88,490 price tag of the Model S. The less expensive Model S version boasts a driving range spanning from 298 miles to 320 miles, while the Model S offers an extended range of 375 miles to 405 miles.
Last month, the world's top automaker in terms of value mentioned that its operating income and revenue were impacted due to reduced average selling prices and decreased sales of its pricier models.
During the second quarter, the company witnessed a 19% surge in sales of its older Model X and S vehicles compared to the previous year.
Shares of TSLA are down 1.26% in pre-market trading on Tuesday.