Tesla cut prices of its Model S and Model X vehicles with a 100 kWh battery.
Tesla's most expensive vehicles are getting a price cut.
On Wednesday, the company reduced the price of its Model S and Model X vehicles with 100 kWh batteries. These are Tesla's priciest models, and they have the longest range.
Tesla attributed the price cuts to improved battery efficiency.
"Tesla is passing cost efficiency improvements of approximately 3% in 100 kWH pack production through to customers," a company spokesperson told Business Insider.
The performance versions of the Model S and Model X both got a $5,000 price chop, while the base models got a $3,500 reduction.
Here's a breakdown of how the cuts will impact the final prices:
Model S 100D (Base model): $97,500 to $94,000
Model S P100D with Ludicrous Mode: $140,000 to $135,000
Model X 100D (Base model): $99,500 to $96,000
Model X P100D with Ludicrous Mode: $145,000 down to $140,000
Tesla is making a big push to make its lithium-ion batteries more efficient and more affordable.
The company's giant Gigafactory in Nevada is aimed at dramatically cutting the cost of its batteries by "using economies of scale, innovative manufacturing, reduction of waste, and the simple optimization of locating most manufacturing process under one roof," the company states on its website.
Once the factory is fully operational by 2020, Tesla estimates the factory will enable it to reduce its battery prices by about 30%.