Electric vehicle sticker shock: Tesla introduces cheaper versions of the Model S and Model X
jetcityimage/iStock Editorial via Getty Images
Tesla (NASDAQ:TSLA) traded lower in early action on Tuesday after the electric vehicle maker launched standard variants for its Model S and X vehicles that are about $10K cheaper than the regular versions in a bid to boost demand. The standard range Model X will be priced at $88,490 vs. $98,490 previously and the Model S Standard Range will be priced at $78,490 vs. $88,490 previously. The Model X Standard Range has 255 to 269 miles of range vs. 330 to 348 miles for base model and has a 0-60 mph speed of 4.4 seconds vs 3.8 for the base model. The Model S Standard Range has 298 to 320 miles of range vs. 375 to 405 miles for base model and has a 0-60 mph speed of 3.7 seconds vs. 3.1 for the base model.
Hargreaves Lansdown analyst Susannah Streeter noted the Tesla (TSLA) price cut drive continues to shift up a gear as the company tries to swerve a weaker sales pattern in a tougher economic environment amid greater competition. "By dropping the cost of new variants of model S and X ranges, the idea is to appeal to consumers who are keen for the badge and the EV experience but might be put off by the higher price tag compared to competitors," noted Streeter. The price cut arrived just a day after Tesla (TSLA) reduced the price of Model Y variants in China after deliveries in the country in July dropped to the lowest level this year. Part of the rationale of the pricing cut in China was that formidable rivals like BYD Company (OTCPK:BYDDF) are available at considerably lower price points than Tesla, which Streeter noted the company sees as a risk to revenue growth in the important growth region.
Shares of Tesla (TSLA) fell 1.05% in premarket trading on Tuesday. General Motors (GM) was down 0.88% and Ford Motor (F) dipped 0.66%. Rivian Automotive (RIVN) declined 1.88% and Lucid Group (LCID) was off 1.47%.
More on Tesla:

Fisker inks deal with Tesla to give customers access to the Supercharger network
Tesla's Valuation Is Far From Absurd
Tesla's CFO exit doesn't mean run for the hills; China deliveries, on the other hand...
Tesla Stock: 5 Key Concerns
Common Sense Approach To Investing In Tesla