Tesla reduces prices on model 3, abandons model S, model X

Tesla is reducing the price of the Model 3 because it aims to make its best-selling product more affordable and gives up the versions of other vehicles.

Tesla said Monday that the price of Model 3 had been reduced from $ 1,000 to $ 38,990. The company will no longer sell standard versions of the S and X models, which increases the minimum cost consumers will have to pay for these cars.

The basic version of the S model increases from $ 75,000 to $ 79,990, while the price of the Model X increases from $ 81,000 to $ 84,990.

"In order to make the purchase of our vehicles even simpler, we are standardizing our range of vehicles and streamlining the number of finishing packages available for the S, X and 3 models," CNBC spokesperson told CNBC. You're here. "We are also adjusting our prices in order to continue to improve affordability for customers.As with other automakers, we periodically adjust prices and available options."

These changes will precede Tesla's second quarter results next week. In its latest report, Tesla recorded a larger-than-expected loss and lower-than-expected revenue, as demand for its cars slowed as a result of the loss of a valuable tax credit for buyers.

As part of the update, Tesla incorporates its high-performance "ridiculous mode" into the price of Model S Performance and Model X Performance variants. The Ludicrous mode previously cost $ 20,000 to buyers.

In addition, CEO Elon Musk tweeted Tuesday that the price of a Tesla with all its autonomous driving capabilities would increase by $ 1,000 from August 16.

"As mentioned earlier this year, the cost of the Tesla FSD option will increase every few months," wrote Musk. "Those who buy it sooner will see the benefit."

In April, Musk said that the cost of the autonomous driving functionality "would increase significantly over time".

Tesla's cars are not yet able to enjoy full autonomy and Musk said he expects all features to be ready in the next two years.

However, Musk remained ambitious about Tesla's self-driving projects, recently telling investors that self-driving would help the company achieve a market capitalization of $ 500 billion. Tesla is currently valued at $ 44.6 billion.

Tesla produced a record 87,048 vehicles in the quarter ended June 30th. Shipments increased slightly from the previous quarter to 95,200 vehicles.

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