Tesla’s financial conditions have not been very well lately, therefore, the company has been forced to cut the costs by raising prices for supercharging, discontinue selling 75kWh Tesla Model X and Tesla Model S and reducing the workforce by 7%. To make the matters even worse Tesla has recently been fined $30,000 for alleged OSHA workplace safety violations.
Although that is a mere drop for carmaker considering the company size, this is not ideal for Tesla to lose any money at this point. With being said that, all of these decisions intended to help Tesla to become more stable. But the stabilization doesn’t necessarily mean that the customers have to suffer for this. Tesla just chose to roll out two cheaper versions of its famous models, Tesla Model S and Tesla Model X.
The old existing 100kWh Tesla Model S and Tesla Model X are now called Model S “Extended Range” and Model X “Extended Range” and their prices have been cut down by $1000. These cheaper models will feature software locked batteries – this is the decision which enabled Tesla to drop the prices of Tesla Model S by $8,000 to $75,750 and for Tesla Model X $78,950 after the incentives.
We are seeing a drop around 35 miles for each model. Because the new cheaper versions of Model S and Model X will feature miles range 310 and 270 respectively as compared to their extended versions which got the 335 and 295 miles range. A decrease in range might disappoint some of the consumers but for those who are budget conscious may just get the discount they need to get Tesla bandwagon.