Tesla unveiled cheaper, shorter-range Model S and Model X electric vehicles

With an intriguing twist, Tesla (TSLA) unveiled less expensive versions of its higher-end Model S and Model X sedans.

Tesla currently provides a «Standard Range» Model S and a «Standard Range» Model X variant on its website. Both cost $10,000 less than the website’s standard models.

The new Model S Standard Range has a starting price of $78,490 and a range of 320 miles as opposed to 405 miles for the previous base trim, now simply referred to as the «Model S.» The Model X Standard Range starts at $88,490 and has a range of 269 miles as opposed to 348 miles for the normal «Model X.»

In order to cater to a wider range of customers, Tesla occasionally introduces multiple trims of its models, with range, power, and features specific to different price points. Gaining market share can also be achieved by lowering prices and offering more affordable trims, albeit Tesla may be sacrificing margins in favor of volume expansion. In direct competition with Tesla rival Lucid, which cut the price of its entry-level Air EV sedan by $5,000 to $82,400 just last week, Tesla may launch this «Standard Range» variant.

Launching EVs with a shorter range makes financial sense because smaller batteries are more affordable. But as Electrek originally noted, this might not be the case.

According to Electrek, advisors at Tesla Service Centers confirmed that the new Standard Range Model S and Model X are actually range limited via software after observing that the Standard Range vehicles weighed the same as the extended range normal vehicles (suggesting equal battery size). When Electrek questioned Tesla about whether they intended to unlock the extra range through a membership or one-time charge in the future, they received varying responses.