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Tesla lower price of Model X

Tesla Motors CEO Elon Musk introduces the falcon wing door on the Model X electric sports-utility vehicles during a presentation in Fremont, California September 29, 2015. — Reuters picTesla Motors CEO Elon Musk introduces the falcon wing door on the Model X electric sports-utility vehicles during a presentation in Fremont, California September 29, 2015. — Reuters picPALO ALTO, Aug 8 — One of the main reasons people give for not considering an all-electric vehicle is the cost. Despite generous government financial incentives in many parts of the world to encourage people to buy EVs, prices remain relatively high when compared to similar models with internal combustion engines.

Tesla's price cut for one of its models will therefore be welcome news.

But don't get too excited at the thought of getting a highly desirable Tesla at a bargain price. The vehicle in question is the Model X SUV, not the relatively affordable Model 3, and its price has been reduced slightly, not slashed by any means. The electric crossover Model X has had its price cut by US$3,000, but still has a starting price of some US$79,500 (RM340,700).

Even so, it's an encouraging move by Tesla. Some analysts had predicted that the launch of the more affordable Model 3 with its base price of US$35,000 would lure some potential buyers away from the luxury Model X.

But in fact, it appears demand for the more expensive EV crossover hasn't waned at all since the Model 3 went on sale, and efficiencies achieved through ramping up production means it now costs less to produce the Model X than it used to.

It seems to be a case of so-far so-good for sales of the company's costlier models as demand for the Model S luxury sedan as well as the Model X has actually increased since the lower priced Model 3 went on sale.

In a statement on Friday, Tesla boss Elon Musk announced, “When we launched Model X 75D, it had a low gross margin. As we've achieved efficiencies, we are able to lower the price and pass along more value to our customers.”

The price for the most affordable version of the Tesla crossover has now fallen from US$82,500 to US$79,500, but the P100D version of the Model X with faster acceleration and longer range costs considerably more at US$145,000. — AFP-Relaxnews

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