(Photo credit should read FREDERIC J. BROWN/AFP via Getty Images)
- Tesla is now selling a "standard range" Model S and Model X at $10k less than previous offerings.
- Tesla has cut its car prices multiples times this year as part of an ongoing price war.
- The company is facing increasing competition in the EV market.
If you've had your eye on a Tesla Model S or Model X, they just got more affordable.
Tesla is now selling lower cost "standard range" versions of its higher end models, the Model X and Model S, as it faces increasing competition.
Each standard range model is $10,000 cheaper than its respective regular model — the Model X starts at $98,490 on Tesla's website, while the new Model X Standard Range starts at $88,490. The Model S starts at $88,490, while the new Model S Standard Range has a base price of $78,490.
The standard range versions have a slightly longer 0-60 acceleration time than their counterparts, and, as implied in the name, a shorter range, meaning they won't be able to travel as far before needing a recharge.
The electric vehicle market is heading towards a plateau after years of rapid growth as the EV buyer profile shifts from early EV adopters to the more average and practical consumer, Insider previously reported. As the barrier to entry for EV ownership grows lower and new competitors continue to emerge, EV automakers are fighting to stay competitive.
Tesla's lower cost options come as part of the company's price war — the company has slashed its car prices multiple times over the last year, boosting its sales in an effort to increase its market share of the EV industry — at the expense of hurting its profit margins.
"We just don't control the market conditions," Tesla CEO Elon Musk said during the company's latest earnings call in July. "If the market condition is stable, I think prices will be stable. If they're not stable, then we would have lower prices. I strongly believe Tesla is a big long-term investment. And don't sweat when things go up and down."
Tesla's Model 3, the company's most affordable vehicle, currently has a base price of $40,240. That's already $1,000 less than it was in April. These price changes come ahead of the much-anticipated and delayed launch of the Cybertruck, which the company is now saying should begin deliveries later this year.