$10,000 Price Cut in Disguise? Tesla Introduces The Entry-level Model S/X

On August 14, Tesla's official website in the United States showed that Tesla launched the shorter and cheaper Model S and Model X in the United States, which comes at a time when the company continues to focus on reducing costs and prioritizing sales growth.

Tesla's new Model S and Model X "Standard Range" versions are priced at $78,490 and $88,490, respectively, about 10% (or $10,000) less than the previous lowest-priced version, and can be delivered between September and October 2023.

Tesla's new Model S has a range of up to 320 miles (515 kilometers), which is lower than the base version (405 miles) and the Plaid version (396 miles). Tesla's new Model X has a range of up to 269 miles, which is much lower than the base version (348 miles) and the Plaid version (333 miles).

Tesla did not immediately respond to a request for comment.

Since the end of last year, Tesla has slashed prices in the U.S., China and other markets and offered other incentives to reduce inventory in an attempt to protect itself from competition and economic uncertainty.

On August 14, Tesla lowered the price of Model Y long-range version and high-performance version in the Chinese market. Tesla's shares were lower as investors worried that its margins would come under further pressure.

The Tesla Model X and Model S launched in 2012 and cost more than the Model 3 and Model Y. In the second quarter of this year, Tesla delivered 19,225 Model X and Model S, up from 16,162 in the same period last year.

The latest move comes as Tesla prepares to deliver the long-delayed Cybertruck and is building a new factory in Mexico to produce mass-market electric vehicles.