Tesla, the fan-favorite controversial electric carmaker, has cut prices across their entire product range as the tax credits on their vehicles fades towards the end of 2019. Previously, before 2019 started, Tesla customers in the US could get a $7,500 tax credit. From January 1st on that credit declined to $3,750, and it’s now only $1,875; it’ll be gone altogether by the end of the year.
In response to these tax credits vanishing, Tesla is doing its part to try to keep their luxury electric cars attractive to prospective buyers. These changes also include a few product shuffles of trim levels among the higher end of the range. Are the price cuts enough to keep the cars competitive in the market, or does this mark the end of an era for Tesla?
Lineup Changes
Starting on Monday, Tesla pulled the Standard Range versions of the Models S and X, leaving only the more expensive Long Range and Performance versions. At the same time, the Long Range Model S dropped down to $79,990 from $85,000. For comparison, the Standard Range Model S was $75,000.
Oddly, the price of the Model S Performance trim went up to $99,990, where it was previously only $96,000. That said, the Ludicrous mode option is now standard, while it used to be a $20,000 upcharge. The Ludicrous Mode lives up to its name, offering absurd acceleration and speeds.
Price Cuts
As for the more affordable Model 3, it’s now seen price cuts across its entire range. Previously, the $35,000 Stander Range Model 3, long promised by Musk, was pulled in favor of the Standard Range Plus. The Standard Range Plus started out at $39,500, though it’s now been reduced to $38,990.
On the higher end, the Long Range Model 3, which allows for significantly more range, is now down to $47,990, a solid $1,500 cheaper than its previous price of $49,500. The highest trim level of the Model 3, the Performance Model, received the steepest price cut, dropping all the way from $59,500 to $54,990. That’s nearly $5,000 off of one of the best cars on the market!
Clearer Product Lineup
This does a few great things for Tesla. Namely, it cleans up the product line dramatically. Previously, there was little distinction between the high end Model 3s and entry-level Model Ss. Now, instead of being a bit more muddied, it’s clear that there’s a distinction between the two vehicles. The high-end Performance Model 3 comes in at $54,990, while the low-end Long Range Model S starts way above that, at $79,990.
Previously, it was entirely possible to outfit a Performance Model 3 with so many options that it was nearly as expensive as the entry-level Standard Range Model S. Now, it’s significantly more clear that there’s a hard distinction between the two products.
How Important is This?
It’s worth noting that this just means that the Model 3’s Standard Range Plus and Long Range options are overall more expensive than when the full tax credit was still available. These price drops do little to make the vehicles more affordable to people who were already unable to afford a Tesla.
That said, if you’re the kind of person who was already looking into getting a Tesla, but waiting on notable price cuts now’s your time to consider it more seriously. The inclusion of Ludicrous Mode on the Performance Model S for only $99,990 makes it one of the best deals on the absurdly-powerful Tesla. Likewise, anyone interested in the Performance Model 3 should consider picking one up now that they’re only $54,990, a solid $5,000 less than they were a week ago. That’s a hard deal to pass up if you’re in the market!
