No one is expecting this right in the middle of what its CEO calls “production hell” for Tesla’s upcoming Model 3. But then it happened. Much to everyone’s surprise, the standard model’s starting price dropped overnight by $3,000 after the company updated their website.
At the moment that Tesla launched the Model X, its CEO Elon Musk announced that its price would be higher than the Model S by at least $5,000. Sounds too good to be true? Well, not anymore.
Pricing for the Model X 75D was originally pegged at $82,500 which is significantly higher compared to the Model S 75D that sells for only $74,500. Soon after the $3,000 price cut, the base Model X now costs only $79,500. A small $5,000 difference.
Also with a difference of just $5,000, customers can choose between the high end Model X and the high end Model S that come packed with more standard features. The Model X P100D costs $145,000 while the Model S P100D costs $140,000.
In a statement, Tesla explains the price difference on cost and said that it can be attributed to “achieved efficiencies”. Add to that the fact that the Model X 75D only had a low gross margin at the time of its launch. Hence, to pass along more value to its consumers, they decided to lower the price.
Moreover, Tesla confirms that they now hav the capacity to produce as many Model X just as they do with the Model S. It can be recalled that the EV startup did take long to reach this certain level of production because of the earlier problems encountered with the Model X. In any case, it looks like they have succeeded this time.
As for its newly updated features, Tesla has already included the Premium Package on both the Model X P100D and Model S P100D as standard. It’s a real bargain, considering that the newly added package costs $5,000. That means that what used to be an optionally available package is now standard among the Model X and Model S’ range topping models. The premium upgrade consists of a medical grade HEPA filtration system, 5 heated seats and an upgraded audio system.
The main reason that customers hold back from buying a Tesla vehicle has always been the price. Now that the company added more features and even lowered the base price of its current SUV range, this only proves that Tesla is doing whatever it takes to make their products more accessible.