From Bearded Tesla Guy.
Tesla just made a huge pivot in their lineup, and the way they did it is most surprising. Not only did Tesla just release 2 all new models that can be ordered right now, they also have released a very creative price reduction for the Model X and Model S.
Tesla has been struggling to sell the Model X and Model S as fast as they make them. In fact, throughout the year we can see the inventory on the 2 flagship models growing every quarter. As seen at TeslaInfo website (https://tesla-info.com/blog/inventory-stats-regional/Global), both Model X AND Model S are currently sitting at their highest inventory levels this year.
Tesla has been out front on offense to help drum up demand for both cars. They have offered 10k supercharging miles, 3 months of free FSD, 3 years of unlimited supercharging, and 6 years of unlimited supercharging for older model owners. On top of all of that, prices have come way down since the beginning of the year, making the Model X and Model S more affordable now than they have been since the refresh.
Tesla has a unique challenge when addressing the Model X and Model S. These 2 premium options come at a higher price point. They also offer some upgraded features you wont find in the Model Y and Model 3. In order to keep separation, the prices can’t be too close, or they will cannibalize the existing demand on Model Y and Model 3.
In addition, Tesla has been facing a lot of backlash as they have continued to lower prices at extreme levels. These major shifts in prices have lowered the value of not only the used cars out there, but also made it hard for consumers to know when to place an order while they hold out for a better deal soon.
This time, Tesla is trying an alternative strategy that they have used in the past. Tesla has offered range limited options for the Model X and Model S, and they have been able to drive up demand in doing so. In this case, it will be interesting to see if it also drives demand and helps to deplete existing inventory. But how has Tesla done this?
After looking at all the specs listed on Tesla’s website, it would appear that the new Standard Range Model X and Standard Range Model S come with the same weight, features and charging speed as the fully equipped version. The difference is reduced range, and reduced performance. With that said, it would suggest that Tesla is actually just software locking existing cars and selling them at a significant discount.
In the past when Tesla has done this, they dont always offer a way to unlock that additional capacity in the future. The lates round was just last year when Tesla offered to unlock Model S 60 software locked cars for $4,500. It is not likely to be the case this time, but there is always the possibility that Tesla will go this route again.
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