Tesla an American automaker, energy storage company has lowered the starting price of the Model X SUV, from $82,500 to $79,500. Tesla Model X is a little more attainable due to $3,000 price drop which is a result of improved margins that company achieved. The refined outcome is accomplished because of its efficiencies acquired in the manufacturing process.
In a statement, Tesla stated “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.”
The most high-priced version of the Model X is the P100D with features like fastest acceleration and longer range costs $145,000.
Sales performance of Tesla’s Model S and Model X were the key interest areas during the company’s earnings report the last week. As the experts in the industry had anticipated that the Tesla’s Model 3 and its tempting price could potentially drive down the demand for other expensive existing electric vehicles in company’s lineup. But according to the company in the wake of Tesla’s dashing Model 3 debut at the end of July increased the demand for both Model X and Model S.
Talking about the Tesla’s earnings, the CEO of Tesla, Musk told that it’s hard to predict the future as they’re seeing boosted demand raised out of the new Model 3 launch, and see no reason why it won’t go on. If Model 3 creates a lasting halo effect for company’s higher end electric cars, that’s probably the best possible result the automaker could ask for, especially because it would take some time before satisfying the existing demands for Model 3 with enough production volume.
The price deduction of Model X 75D’s should assist stokes that demand further. The upcoming result of next quarter will be the real one to analyze. Though, we will have enough time and distance from the Tesla’s latest Model 3’s big press moment to calculate if the halo effect is a lasting one or not.