if one was in the market for the entry model this is the opposite of a price cut.
So, if you’re in the market for a “cheap” electric car, you have a price cut. If you’re looking for a high end one, you have a price cut. It’s only if you’re looking for a “cheap, high end” electric car that your cost goes up.
That seems like a reasonable trade off for Tesla. Let the value buyers go for a Model 3, and push the premium buyers to the higher end. Plus, with the Model 3 released there may not be too many people getting the entry level Model S and X anyway.
from the full price, matching the reduction in incentives.
Note that the price cut is offset by the 50% reduction in federal tax credits from $3,750 to $1,875.
There's a portion of the market who will compromise range just to have a BEV and I would imagine the Model 3 has cannibalized most of that market from the S and X.
Honestly when you're talking about vehicles that cost almost 100k, it's hard to quibble over a few thousand dollars savings from a smaller battery.