Tesla, since inception, has always had a straightforward pricing structure with only a few trim levels and options to choose from on their various models. This makes it easy for Tesla to keep production simpler and cheaper than competitors while being very transparent to the consumer. While it may be simple to understand the pricing structure, it hasn’t stopped Tesla from changing it up quite often. Once again, Tesla has changed the few packages they offer and the pricing behind it.
- This new lineup update kills the Standard Range versions of Model S and Model X while now offering only Performance and Long Range models.
- The Long Range Model S now starts at $79,990 (370 miles of range) and the Performance model starts at $99,990 (345 miles of range) and can hit 60 mph in just 2.4 seconds.
- The Model X now starts at $84,990 for the Long Range model (325 miles of range) and $104,990 for the Performance-based one (305 miles of range ) which can hit 60 mph in just 2.7 seconds.
- Ludicrous Mode, previously a $20,000 option, is now included with the purchase of a performance variant of the Model X or S. For those of you who aren’t familiar with Tesla lingo, Ludicrous Mode gives a 20% increase in acceleration, which will take a Model S from 0-60 mph in just 2.4 secs, beating out most multi-million dollar supercars.
While the Model S and Model X haven’t gotten an update in terms of styling, they were able to optimize the drivetrain to give the S and X more range than ever before using the same 100 kWh battery pack. The new EPA-estimated range for the Tesla Model S is now 370 miles and 325 miles for the Model X. While Tesla has always held the title for longest range production electric vehicle, it’s great to see them improving upon an already exceptional electric drivetrain.
When it comes to their mainstream Model 3 sedan, Tesla cut the price of the cheapest online version of the Model 3 from $39,900 to $38,990. The standard version dubbed Standard Range Plus is rear-wheel drive and boasts a healthy 240 miles of range.
Why Is Tesla Doing This?
Tesla’s PR department states, “We are also adjusting our pricing in order to continue to improve affordability for customers. Like other car companies, we periodically adjust pricing and available options.” While periodical adjusting for Tesla is more like four changes a year compared to around once per year for any other automaker, it’s ultimately about keeping profitability up and cars rolling off the line into people’s garages for Tesla.
Cutting prices is good for the short term but bad for the long term, also having a negative effect on Tesla’s reputation, as they have changed pricing nearly every quarter, confusing potential customers and upsetting current owners who pay for a feature one month, only for it to be a complimentary inclusion the next.