Tesla Cuts Model 3 Price But Model S And X Changes Less Welcome

Tesla is making some changes to its product lineup today, dropping some vehicles and tweaking prices for others. If you were considering buying a standard-range Model S or Model X, then this is bad news, as Tesla has dropped both vehicles from its product lineup. That leaves the long-range and performance models as the only available Model S and Model X variants.

While Tesla has dropped the price of its long-range models to go along with this shake up, the entry-level variants for the Model S and Model X are now more expensive than they once were. With the long-range models now the de facto the entry-level cars for both the Model S and Model X lines, starting prices are up to $79,990 and $84,990 respectively.

For a lot of people, the Model S and Model X are priced well outside of their budgets, and if they're going to buy a Tesla at all, it'll be a Model 3. There's good news on that front, as Tesla has dropped the starting price of the Model 3 to $38,990. In a statement to Reuters, Tesla said that it made these changes to standardize its lineup on a worldwide scale.

"To make purchasing our vehicles even simpler, we are standardizing out global vehicle lineup and streamlining the number of trim packages offered for Model S, Model X and Model 3," the company said. "We are also adjusting our pricing in order to continue to improve affordability for customers."

Dropping the price on the Model 3 is probably a good move for Tesla, because at the beginning of July, the company revealed that the vast majority of its orders and shipments in Q2 2019 were for the Model 3. Tesla delivered 95,200 vehicles during the quarter, of which 77,500 were Model 3s. Anything that helps that number grow in subsequent quarters – like this price drop might – is a good thing, so we'll see how Model 3 deliveries fare in Q3.