Tesla to release cheaper versions of S and X electric vehicles in North America

Tesla Inc. has added two lower spec versions of its less popular Model S and X electric vehicles in the US and Canada, slashing the price by $10,000 as competition intensifies, Report informs referring to Bloomberg.

The cheaper versions come with less range and slightly slower acceleration than the base models. The ‘Standard Range’ Model S sedan is priced at $78,490, while the lower spec Model X sport utility vehicle costs $88,490, according to the automaker’s website.

The Model S and X account for a fraction of Tesla’s sales, making up less than 5% of deliveries in the second-quarter. Unlike the 3 and Y, which are eligible for a $7,500 US tax credit, the S and X receive no discounts, reducing their appeal.

Tesla on August 14 cut the price of its higher-spec Model Ys in China by 14,000 yuan ($1,900), fueling concerns of a renewed price war in the contested Chinese market.