Tesla offers lower-priced versions of its Model S and X vehicles after cutting production

Key Points
  • Tesla has begun selling lower-priced versions of Model S electric sedans and Model X SUVs that have 100 kWh battery packs.
  • The company has been struggling to control expenditures while ramping up production of its Model 3 vehicles, and delivering a higher volume of cars and repair services than ever before.
  • Tesla recently laid off 7 percent of its workforce and cut back on Model S and X production shifts at its main car plant in Fremont, California.
Tesla founder Elon Musk speaks at the unveiling event by "The Boring Company" for the test tunnel of a proposed underground transportation network across Los Angeles County, in Hawthorne, California, December 18, 2018.
Robyn Beck | Pool | Reuters

Tesla has begun selling lower-priced versions of its Model S and Model X electric vehicles equipped with 100 kWh battery packs.

The company faces mounting debts and other challenges as it aims to take its Model 3 sedans mainstream and to manage a greater number of deliveries and service appointments than ever before.

Now that Model S and Model X vehicles will all have 100 kWh battery packs — with their range and other features differentiated through "over-the-air" software updates — it may be easier for Tesla to make and deliver these cars to customers.

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These moves were not a complete surprise: On Jan. 10, CEO Elon Musk announced that Tesla would stop making versions of the Model S and X electric cars that had a lower price and a 75 kWh battery pack.

The lowest priced Model S will now cost $85,000 with software limiting the range of the battery to 310 miles per full charge, while the Model X will start at $88,000 with a range of 270 miles.

The "extended range," "performance" and "performance with ludicrous mode" versions will range from $93,000 to $137,000.

Electrek first reported on the new pricing.

Tesla announced the layoffs of about 7 percent of its work force on Jan. 18, its second restructuring in seven months. After the layoffs, the company acknowledged it cut back production of its Model S and X vehicles at its Fremont, California, car plant.

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