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TESLA logo on a charging station at on May 26, 2023 in Merklingen, Germany. 
Harry Langer/ | Defodi Images | Getty Images

Tesla rolled out cheaper versions of its Model S and Model X vehicles in the U.S. as competition in the electric vehicle space continues to ramp up.

The lower cost versions of both vehicles launched Monday are $10,000 less than the regular model, according to Tesla’s website.

The Model X Standard Range starts at $88,490 versus $98,490 for the Model X. The cheaper version has a driving range of 255 miles to 269 miles. For comparison, the Model X has a range of 330 miles to 348 miles and a slightly faster acceleration speed.

The Model S Standard Range starts at a price of $78,490 versus $88,490 for the Model S. The cheaper version of the Model S has a driving range of 298 miles to 320 miles. The Model S has a range of 375 miles to 405 miles.

Tesla continues to focus on gaining market share and boosting sales of its cars at the expense of margins. In its June quarter earnings, the carmaker, run by billionaire Elon Musk, reported operating margins of 9.6%, the lowest for at least the last five quarters.

The lower cost cars are part of a broader drive by Tesla focusing on being competitive on price as auto makers around the world launch electric vehicles and competition heats up.

Tesla has continuously tinkered with its prices in key markets. The company cut prices again for its Model Y and Model 3 cars in China on Sunday.

The Model S and Model X are Tesla’s oldest vehicles and the price cut may be an attempt to breathe new life into the cars as investors await mass production of the company’s Cybertruck next year.

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