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article imageTesla cuts price of its Model S and X EV's up to $10,000 and more

By Ken Hanly     Mar 5, 2019 in Technology
As well as announcing a new base Model 3 Standard Range last week, Tesla has also announced that it will cut prices on its more expensive models, the Model S and Model X.
The price drops
In late January Tesla announced the new standard range Model S and X EVs and at the same time dropped the price on the luxury models by $1,000. Last week Tesla went further and cut the prices by even more.
The Model S
The base, Standard Range Model S, has a range of 270 miles. It will now sell for $80,200 when just last month it sold for $86,200 including the mandatory destination and documentation fee of $1,200.
The Long Range Model S has a 335 mile range. Its price has declined by $10,000 from $94,200 to $84,200. Finally the Performance model that can go from 0-60 mph in just 3.0 seconds dropped by $13,000 from $113,200 to $100,200 including delivery.
The extra Ludicrous Mode that can go from 0-60 in 2.4 seconds is now a stand-alone option priced at $15,000 a drop of $5,000.
Model X
Model X prices dropped even more. There is no Short Range Model X. The base Long Range model now will sell for $89,200, a drop of $8,000 from the previous price. It has the same battery as the long range Model S but being a bigger SUV it has a 295 mile range.
The Performance model has an even greater price decline of $13,000, selling for $105,200. The Ludicrous Mode adds the same $15,000 to the price as on the Model S.
Autopilot adds adaptive cruise control and also active lane control. It adds a $3,000 cost in both models. There is also a prepayment option for the Full Self Driving that is not expected to be activated until the end of the year. It costs $5,000 but also requires Autopilot to function.
The Federal Tax Credit has been reduced and in 2020 will be eliminated
One reason that Tesla is reducing its prices is that the Federal Plug-in Vehicle Tax Credit was cut in half starting this January. It is scheduled to drop again in July and be ended at the end of this year. The drops kicked in after Tesla sold more than 200,000 EVs as of last July.
The entry level Model 3 will finally be made available
Back in 2016 when the Model 3 was announced there was to be a base model with a range of 220 miles and a price tag starting at just $35,000. However, up until now only higher priced versions of the model have been available. Now Tesla announced that the entry level model will be available for delivery in two to four weeks in the US. It will be available for ordering outside the US in four to six months.
With the standard mandatory documents and destination fee the base model will cost $36,200. Specifications include a top speed of 130 mph and 0-60 acceleration in 5.6 seconds. CEO Elon Musk claims that the entry level model will have the same safety level as the more expensive models.
There will also be a Standard Range Plus model costing $38,200 and with a 240 mile range and a top speed of 140 mph. It ha a bit better acceleration at 0-60 in 5.3 seconds. The Standard Plus also has what is called a Partial Premium interior.
Tesla to sell vehicles only online
The company is adopting a new strategy of selling its EVs only online. The company said: "Over the next few months, we will be winding down many of our stores, with a small number of stores in high-traffic locations remaining as galleries, showcases and Tesla information centers." However, Tesla is also intending to hire more service technicians to ensure adequate service.
More about tesla model 3, Tesla Model X, Tesla model s
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