Tesla, the leading electric vehicle maker, has introduced new standard range versions of its Model S and Model X cars in the United States, priced lower than the other variants of the same models. The new cars are expected to boost Tesla’s sales and market share in the competitive EV market.
The new standard range Model S and Model X cars are priced at $78,490 and $88,490, respectively, according to Tesla’s website. These prices are lower than the long range and performance versions of the same models, which start at $89,990 and $99,990, respectively. The new cars also have lower battery capacity and range than the other variants. The standard range Model S has a range of 405 miles, while the standard range Model X has a range of 360 miles. The long range and performance versions have ranges of 412 miles and 390 miles for the Model S, and 375 miles and 341 miles for the Model X, respectively.
Tesla claims that the new cars offer “the best value proposition in their respective classes” and that they are “designed for customers who want to experience Tesla’s flagship vehicles at a more affordable price point”. The new cars also come with Tesla’s advanced features such as Autopilot, Full Self-Driving Capability, and Premium Connectivity.
Tesla Cuts Prices in China as Well
The launch of the new and cheaper Model S and X cars in the US comes after Tesla cut prices in China for its Model Y long-range and performance versions starting on Aug. 14. The price cuts ranged from 8% to 12%, depending on the model. The Model Y is Tesla’s newest and most popular vehicle, which competes with other SUVs in the Chinese market.
Tesla’s price cuts in China are seen as a response to the increasing competition from local EV makers such as Nio, Xpeng, and Li Auto, which have been gaining market share and customer loyalty with their innovative products and services. Tesla also faces regulatory challenges in China, such as safety investigations, data security concerns, and customer complaints. Tesla has been trying to improve its image and reputation in China by increasing its local production, expanding its sales network, and enhancing its customer service.
Tesla’s Sales and Market Share Remain Strong
Despite the price cuts and the competition, Tesla’s sales and market share remain strong in both the US and China, which are its two largest markets. In the second quarter of 2023, Tesla delivered a record 201,250 vehicles globally, up 9% from the previous quarter and 121% from the same quarter last year. Out of these deliveries, 121,050 were Model Y and Model 3 vehicles, while 19,225 were Model S and Model X vehicles. The rest were solar panels and energy storage products.
Tesla’s market share in the US EV market was 69% in the first half of 2023, according to Cox Automotive. This was down from 81% in the same period last year, but still far ahead of its closest rivals such as Ford, Toyota, Chevrolet, and Volkswagen. In China, Tesla’s market share was 11% in June 2023, according to CPCA. This was up from 8% in May 2023, but still behind Nio’s 15% and Xpeng’s 13%.
Tesla is expected to maintain its leadership position in the global EV market for the foreseeable future, as it continues to innovate and expand its product portfolio, production capacity, and geographic reach. The introduction of the new and cheaper Model S and X cars in the US is another step in Tesla’s strategy to make electric vehicles more accessible and affordable for more customers.