Tesla (NASDAQ: TSLA) had a solid start to the trading day on Wednesday’s, after revealing less expensive models of its cars.
On Tuesday, Tesla began selling lower-priced versions of its Model S and Model X electric vehicles equipped with 100 kwh battery packs, meaning that all versions of those cars will come with the same battery.
The company faces mounting debts, amidst other challenges, as it aims to take its Model 3 sedans mainstream, and to manage a greater number of deliveries and service appointments than ever before.
Now that Model S and Model X vehicles all have 100 kWh battery packs — with their range and other features differentiated through "over-the-air" software updates — it may be easier for Tesla to make and deliver these cars to customers.
These moves were not a complete surprise: On January 10, CEO Elon Musk announced that Tesla would stop making versions of the Model S and X electric cars that had a lower price and a 75 kWh battery pack.
The lowest priced Model S will now cost $85,000 with software limiting the range of the battery to 310 miles (about 500 kilometres) per full charge, while the Model X will start at $88,000 with a range of 270 miles (about 430 kms.)
On January 18, Tesla laid off about 7% of its workforce, its second restructuring in seven months. After the layoffs, the company acknowledged it cut back production of its Model S and X vehicles at its Fremont, California car plant.
Shares in Tesla vaulted $2.93, or 1%, to $300.39
