Tesla Inc. (NASDAQ: TSLA) has announced some big changes to its vehicle lineup. According to a statement from the company, Tesla is discontinuing some versions of its vehicles and changing the pricing on others. The company only sells three types of vehicles, but each has different configuration options and pricing.
Going forward, the company will no longer sell the standard range versions of the Model S sedan and Model X sport-utility vehicle. Variants of the Model X and Model S will now be limited to the “Long Range” and the more expensive “Performance” trim packages.
Consequently, that makes the cheapest Model S and Model X options about $4,000 more expensive now. The base version of the Model S is rising to $79,990 from $75,000, while the price of the Model X is increasing to $84,990 from $81,000.
Tesla is also bundling its high-performance “ludicrous mode” into the price of the Model S Performance and Model X Performance variants. Ludicrous mode previously cost buyers an additional $20,000.
Tesla has also announced it’s reducing the price of the Model 3 by $1,000 to $38,990. The moves comes just weeks after the halving of the U.S. tax credit for Tesla vehicles to $1,875 at the beginning of July. The price reduction has raised concerns that the electric-car maker may not be able to sustain sales without support from government incentives.
A Tesla spokesperson released a statement saying, “In order to make purchasing our vehicles even simpler, we are standardizing our global vehicle lineup and streamlining the number of trim packages offered for Model S, Model X and Model 3. We are also adjusting our pricing in order to continue to improve affordability for customers. Like other car companies, we periodically adjust pricing and available options.”
The U.S. is not the only country where Tesla is making pricing adjustments. Tesla is also cutting prices on all vehicles shipped to China. The price of the Model 3 will fall to 355,900 yuan ($51,764) from 377,000 yuan. The prices for the Model S and Model X were reduced roughly 4 percent to 776,900 yuan and 790,900 yuan, respectively.