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International Business Tesla drops cheapest Model X, S variants, cuts prices to simplify lineup

Tesla Inc has dropped the standard-range variants of its Model X and Model S from its product lineup and adjusted prices across its range in a sales push that comes days after the U.S. electric-vehicle maker reported record deliveries.

To simplify its offerings, the automaker on Tuesday limited variants of its Model X sport-utility vehicle and Model S sedan to “Long Range” and the more expensive “Performance.” It also trimmed the price of its now entry-level Long Range variants.

The discontinuation of the standard-range variants, however, means a rise in starting prices – to US$84,990 for the Model X and US$79,990 for the Model S, excluding potential buying incentives.

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Tesla also lowered the starting price of its mass-market Model 3 to US$38,990.

“To make purchasing our vehicles even simpler, we are standardizing our global vehicle lineup and streamlining the number of trim packages offered for Model S, Model X and Model 3,” Tesla said in a statement.

“We are also adjusting our pricing in order to continue to improve affordability for customers.”

Chief executive officer Elon Musk tweeted on Tuesday that the price of Tesla’s full self-driving option is “increasing by ~$1000 on August 16.”

The company has often adjusted price of its forthcoming self-driving features and pushed owners to buy them before delivery.

Tesla’s shares were down 1 per cent at US$250.92 in afternoon trading.

Earlier this month, Tesla said global deliveries of its three models in the second quarter of this year rose 51 per cent from the previous quarter to a record 95,200 vehicles. The Model 3 accounted for about 80 per cent of the total, underscoring the vehicle’s role as the linchpin of Tesla’s growth strategy.

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The automaker said it expected production and deliveries to continue growing in the third quarter.

In China, the world’s largest market for electric vehicles, Tesla’s changes on Tuesday pushed up the starting price of its Model X to 790,900 yuan ($150,331) and Model S to 776,900 yuan.

Tesla is building a factory in Shanghai where it initially plans to build Model 3 cars. It is taking orders for those China-made versions, which have a starting price of 328,000 yuan.

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