Tesla introduced several changes to its online design studio overnight in order to reduce the base price of Model X, its all-electric SUV, and make more options standard on the performance versions of Model S and Model X.
Before Tesla launched the Model X, Elon Musk said that the company aimed to make it about $5,000 more expensive than a Model S with similar options.
But that never exactly happened until now.
The current base Model S 75D starts at $74,500, while the Model X 75D started at $82,500 until last night.
But after a $3,000 price drop today, the Model X 75D now starts at $79,500 with the standard 5-seat configuration or exactly $5,000 more than a Model S with similar options.
Tesla explained the price change in a statement:
“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 had a lot of production difficulties with the Model X and its many “bells and whistles”, like Falcon Wing doors and self-presenting front doors, and it resulted in what Musk referred to as “production hell” during most of 2016.
At a press briefing for the launch of Model 3 last week, Musk said that Model X has now reached production parity with Model S in Fremont, where they are producing about 2,000 vehicles per week.
After hitting the lower-end of their delivery guidance for the first half of the year, Tesla said that they expect higher deliveries in the second half of the year – helped by Model X, which is now on display and test fleets for all of Tesla’s locations and in full production.
The new price drop shouldn’t hurt either on the demand side.
Update: Previous version of the article stated a slight price on dual motor Model S, which wasn’t accurate.
The Model S P100D and Model X P100D were the most affected by last night’s changes. Tesla updated the options of the vehicles to add more premium features as standards.
The “$5,000” Premium Package is now being absorbed into standard features for top versions of Tesla’s vehicles. Here’s the Premium package and the new standard features on a Model S P100D:
Interestingly, Tesla managed to absorb those previously $5,000 worth of features while actually reducing the price of the vehicles.
A new Model S P100D starts at $140,000 and a Model X P100D starts at $145,000 or exactly $5,000 more than a Model S with similar options, but they now both include the premium features. The spoiler can also be added without charge.
Can you find any other changes in the design studio? If so, let us know in the comment section below and tell us what you think of those updates.
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