Tesla drops cheapest Model X, S variants, cuts prices to simplify lineup

Tesla Inc has dropped the standard-range variants of its Model X and Model S from its product lineup and adjusted prices across its range, in a sales push that comes days after the U.S. electric vehicle maker reported record deliveries.
To simplify its offerings, the automaker on Tuesday limited variants of its Model X sport-utility vehicle and Model S sedan to "Long Range" and the more expensive "Performance". It also trimmed the price of its now entry-level Long Range variants.

The discontinuation of the standard-range variants, however, means a rise in starting prices - to $84,990 for the Model X and $79,990 for the Model S, excluding potential buying incentives. Tesla also lowered the starting price of its mass-market Model 3 to $38,990.

"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," Tesla said in a statement. "We are also adjusting our pricing in order to continue to improve affordability for customers."

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Earlier this month, Tesla said global deliveries of its three models in the second quarter of this year rose 51% from the previous quarter to a record 95,200 vehicles. The Model 3 accounted for about 80% of the total, underscoring the vehicle`s role as the linchpin of Tesla`s growth strategy.

The automaker said it expected production and deliveries to continue growing in Q3. In China, the world`s largest market for electric vehicles, Tesla`s changes on Tuesday pushed the starting price of its Model X to 790,900 yuan ($115,068) and Model S to 776,900 yuan.

Tesla is building a factory in Shanghai where it initially plans to build Model 3 cars. It is taking orders for those China-made versions, which have a starting price of 328,000 yuan.