Tesla Launches Cheaper Versions of Some of Its EVs in US as Demand Wanes

Tesla Inc (NASDAQ: TSLA), an American automotive company, has introduced cheaper variants of some of its high-end electric vehicles (EVs) to the US market. According to a Reuters report, the decision might be in line with the firm’s resolve to increase sales at a time when demand for expensive EVs has gone extremely low due to the high costs of borrowing.

To this end, Tesla has now launched more affordable versions of its Model S sedan and Model X SUV. But the new versions will come with shorter driving ranges.

For reference, the new S model has a top range of 320 miles. Whereas, the regular dual-motor and tri-motor Plaid versions offer up to 405 miles and 396 miles, respectively. Similarly, the range of the new X SUV model can go up to 269 miles, a significant downgrade from the 348 miles that its expensive variant offers.

However, the performance and range may just be all the difference that exists between the old and new versions. According to a Tesla sales representative, the new versions will have the same battery as the expensive ones. That is, those that cost $10,000 or more.

Tesla Keen on Sales Growth

The latest decision is one of many attempts by Tesla to grow its sales by all means necessary. Before the new launch, the firm already cut down on its vehicle prices in the US, China, and several other markets.

As further proof that Tesla might be prioritizing sales over profit margins at the moment, the company has also employed a strategy of offering incentives to reduce inventory.

Rollouts for the new variants will begin between September and October. But, according to an inside source, Tesla is not planning to improve the range and performance in the future.

For what it’s worth though, the launch is expected to lessen Tesla’s operating income which has been growing worrisome recently. And, more importantly, it is also expected that the launch will help Tesla to increase its dwindling revenue as well.