Tesla's Surprise Move: Record-Breaking Model Discontinuation and Price Drops

Tesla sets many records, but it may have a new one - the quickest discontinuation of a model. Just two weeks ago, the company introduced the Standard Range Model S and Model X. Those have been dropped, but that is not the only thing that dropped. Instead of offering a less expensive version of the luxury models, Tesla drastically reduced the prices of the flagship vehicles.

New Pricing in the U.S. and Canada

In a surprising move, Tesla has made significant price reductions in the U.S. and Canada for its Model S and Model X Long Range variants. The Model S Long Range, originally priced at $88,490 USD, is now available for just $74,990 USD, marking a remarkable 15% reduction. Similarly, the Model X Long Range has seen a significant price drop, now priced at $79,990 USD, down from $98,490, representing an 18.7% reduction. North of the border, in Canada, the Model S Long Range is now priced at $99,990 CAD, down from $121,990 CAD, an 18% reduction, and the Model X Long Range is available for $109,990 CAD, down from $135,990 CAD, marking a 19% reduction.

These price changes carry significant implications. Notably, the price of the Model S LR in Canada is now under the luxury tax threshold. In the U.S., the Model X LR now qualifies for the full $7,500 federal tax credit.

Free Color Options for Model S and Model X

In a bid to possibly remain under the threshold for the federal tax credit and encourage customers to opt for more eye-catching colors, Tesla has made all colors for the Model S and Model X free, including the premium Ultra Red. This change adds a touch of personalization to Tesla's flagship vehicles.

Full Self-Driving Package Price Reduction

In addition to the vehicle price reductions, Tesla has also reduced the cost of its Full Self-Driving (FSD) package. In the U.S., the FSD package now costs $12,000 USD, down from $15,000, while in Canada, it is available for $16,000 CAD, down from $19,500 CAD. The reason behind this FSD price drop remains unclear, as the software package's listed features have not changed. It's worth noting that the FSD Transfer offer is still available until September 30.

Global Price Changes

These price changes are not limited to North America alone; they have had ripple effects globally. Different prices have been observed on Tesla's website worldwide, suggesting a strategic move by Tesla, possibly to boost sales, clear inventory, or maintain its dominance in the global EV market. Notably, these price adjustments have not affected the company's stock price trajectory.

Whatever the underlying reason may be, these price adjustments are undoubtedly welcomed by prospective buyers. As Tesla continues to lead the EV market, these changes not only make their technology more accessible but also reflect Tesla's commitment to staying ahead in the ever-evolving electric vehicle landscape.

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