Another cut in federal tax credits, another shakeup in Tesla's model lineup.
Tesla has cut its prices to split the difference in cost to buyers after the federal tax credit on its cars dropped from $3,750 to $1,875 on July 1. The drop is part of an ongoing phase-out of Tesla's federal tax credit after the company reached 200,000 electric cars sold in the U.S. last July. Under current law, no Teslas will receive a federal tax credit beginning next year.
After extending the maximum range of the company's top-line Model S and Model X luxury cars in April, the company reintroduced Standard Range versions of both models, which had been dropped in an earlier round of equipment and trim-level changes in January. Now, with the latest update to its online order guide on Monday night, Tesla has dropped the Standard Range models again.
The move represents a slight increase in the base price of a Model S, from $79,200 to $81,190, including destination. More significantly, it represents a $5,010 price cut for the remaining Long Range model, from $86,200 to $81,190. The car is rated at 370 miles of range.
Similarly, the $82,200 Model X Standard Range model has been dropped. The new base Model X, now the Long Range, starts at $87,190 with an estimated range of 325 miles. That represents the same $5,010 price cut.
On Performance versions of the Model S and X, Tesla has also made Ludicrous Mode standard. It was previously a $20,000 software option, though the company made it available for free to repeat customers.
Tesla Model 3 - Portland, OR - January 2019
Tesla has also cut $910 from the price of the Standard Range Model 3, from $41,100 to $40,190.
Across the board, Tesla has also changed the standard paint color from Solid Black to Pearl White Multi-Coat, which was previously a $1,500 option. Now buyers who want black, the only single-stage, non-metallic paint color the automaker offers, will have to pay an extra $1,000.
This is at least the fourth time since its federal tax credits began winding down this year that Tesla has updated its pricing and model lineup.