Tesla's high-end Models S, X get big price cuts

Electric Vehicle (EV) maker Tesla has announced big price cuts for its high-end Model S and Model X after shifting to online-only sales.

"The long-range Model S and Model X vehicles now cost $83,000 and $88,000, respectively, down from $96,000 before savings.

"That makes the long-range Model S just $4,000 more expensive than the base version, despite having a range that's 65 miles longer and a top speed that's 15mph faster," the Engadget reported late on Friday.

The huge price cut by the EV maker comes less than two months after it decided to stop manufacturing Model S and Model X with a 75kWh battery pack, opting instead to only sell versions with a 100kWh pack.

The 75kWh pack had powered the entry-level (and most affordable) versions of the Model S and Model X configurations, so that change in early January effectively raised the starting price of each car by between $15,000 and $18,000. Just days before that change, Tesla dropped all prices to help adjust for the fact that its cars are no longer eligible for the full federal tax credit for EVs, according to The Verge.

Meanwhile, the EV maker announced on Thursday: "Shifting all sales online, combined with other ongoing cost efficiencies, will enable us to lower all vehicle prices by about six per cent on average, allowing us to achieve the $35,000 Model 3 price point earlier than we expected."