(Bloomberg) -- 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.
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.
Chief Executive Officer Elon Musk in July said Tesla would have to keep lowering prices if interest rates continued to rise, and warned he was willing to sacrifice more margin to boost output and sales.
Read More: Tesla Sinks as Musk Warns of More Blows to Profitability
Tesla on Monday 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 hostly contested Chinese market.
Read More: Tesla Reignites EV Price War With New Round of Cuts in China
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©2023 Bloomberg L.P.
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