Tesla (TSLA - Get Report) shares drifted lower in pre-market trading Tuesday after the clean-energy carmaker dropped the cheapest versions of its Model S sedan and Model X SUV from its product lineup and adjusted some of its prices in a bid to simplify its offerings of models and ranges of battery-powered vehicles.
The automaker on Tuesday said it will limit its Model X and Model S to 'Long Range' or 'Performance' - cutting out lower end versions of the two cars that have standard-range capability, though also cutting the entry level price point on both models.
A long-range Model S will now start at $79,990, while a long-range Model X will start at $84,990, excluding potential buying incentives. Tesla also lowered the starting price of its mass-market Model 3 to $38,990.
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"To make purchasing our vehicles even simpler, we are standardizing our global vehicle lineup and streamlining the number of trim packages offered for Model S, Model X and Model 3," Tesla said in a statement.
"We are also adjusting our pricing in order to continue to improve affordability for customers."
Tesla shares were down a little more than 2% at $248.22 in early trading Tuesday. Year to date the stock is down approximately 25%.
Earlier this month, Tesla said global deliveries of its three models in the second quarter of this year rose 51% from the previous quarter to a record 95,200 vehicles. The Model 3 accounted for about 80% of the total, underscoring the vehicle's role as the linchpin of Tesla's growth strategy.