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Saturday, August 05, 2017
Tesla Lowers Price of Model X


Tesla Inc on Friday lowered the price of its Model X SUV to $79,500, as the automaker is ramping up production of its new lower-priced Model 3.

The launch of the Model 3, whose base price is $35,000, could steer some potential buyers away from the Model X SUV to that lower-priced sedan. But Chief Executive Elon Musk said earlier this week that demand had not waned for the luxury electric sport-utility vehicle.

"When we launched Model X 75D, it had a low gross margin. As we've achieved efficiencies, we are able to lower the price and pass along more value to our customers," Tesla in a statement on Friday announcing it had lowered the previous $82,500 starting price of the vehicle by $3,000.

The most expensive version of the Model X, the P100D, with fastest acceleration and longer range, costs $145,000.

The Model 3, marketed as a car for the masses, begins at $35,000 before incentives, but a longer-range version is priced at $44,000, to compete with high volume luxury sedans such as the Audi A4, BMW 3-series or Mercedes C-Class.



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