Cost of Tesla full self-driving option increasing by ~$1000 on August 16
— Elon Musk (@elonmusk) July 16, 2019
Another Price Cut and Discontinued Models
Tesla’s best-selling car is the Model 3 because it was intended to be tagged at an “affordable” price of a mere $35,000. In reality, the true price is about $40,000.
But Elon Musk and Tesla reportedly cut the price of the Model 3 by $1,000 to $38,990. This is on top of a stealth price cut related to the halving of the federal tax incentive that kicked in on July 1.
That’s not all. The company is discontinuing the Model S and Model X standard range versions, which are the lowest-priced cars for those product lines, and simultaneously raising the prices of the remaining product lines.
That means the base version of the Model S will leap from $75,000 to $80,000 and the Model X will jump to $85,000 from $81,000.
Corporate Nonsense from Tesla ‘Explains’ the Moves
The official statement out of Tesla reads like standard corporate nonsense:
“In order 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. We are also adjusting our pricing in order to continue to improve affordability for customers. Like other car companies, we periodically adjust pricing and available options.”
You have to love the addition of “like other car companies.” Tesla is nothing like any other car company.