• The Model S Long Range Plus now starts at $74,990, after a $5,000 price drop
  • It also can travel 402 miles on a single charge
  • It has a new feature called “hill hold”

Tesla confirmed Monday that price cuts were made late May to its entire line of electric vehicles (EVs) except the Tesla Model Y luxury SUV. It also claimed its Tesla Model S flagship electric sedan now has an EPA-rated range of a massive 402 miles (676 km) per charge.

The price cut confirmation comes after Tesla reopened its Fremont Factory on May 18 following a highly visible fight against the Alameda County government that wanted to keep it shut to prevent the spread of COVID-19.

Tesla CEO Elon Musk rebelled against the county's guidelines, threatened to transfer the factory to Texas or Nevada and sued the county. Tesla shut down Fremont to comply with a shelter-in-place order that took effect mid-March, but Musk ordered the factory's reopening on May 18.

The pandemic, however, slowed Tesla's sales to a crawl while boosting its inventory, especially in the United States and China. Analysts noted Tesla has to move unsold inventory fast as it ramps-up production, and a price slash is the best way to do it. The price cut might also revive the fortunes of the Model S, which has taken a back seat to the Model 3, Tesla's cheapest and most popular EV.

The Model S has not been a top seller for Tesla in the last few quarters as the company turned its focus to Model 3 sales in the U.S., and the start of Model 3 production and deliveries in China.

Tesla confirmed the previously announced price cuts Monday evening. The Model S Long Range Plus now starts at $74,990, or a $5,000 price drop. The Model S Performance will see its price also cut by $5,000. Tesla’s top performance EV now starts at $94,990.

It’s not certain if discounting the Model S Long Range Plus in the U.S. will help Tesla reach its delivery goals for the second quarter, however. Discounting the price of some of its made in China Model 3 EV did help Tesla resuscitate sales in the Asian country after the coronavirus induced sales slump in April.

Tesla Model S in Norway
A Tesla Model S leaves a Tesla service center in Oslo, Norway. The Model S became the top selling electric car in Norway in March 2019. PIERRE-HENRY DESHAYES/AFP/Getty Images

Tesla is making a big deal of the improved range of the Model S Long Range Plus compared to earlier versions. It said the 402 mile range was mostly achieved by reducing the mass of the vehicle. It used lighter weight materials in its battery pack and drive units, and other lighter weight components.

The Model S Long Range Plus has a new feature called “hill hold” or “HOLD.” This nifty feature allows drivers to remain stopped on a hill without having to press down the brake pedal. It maximizes regenerative braking on the Model S and other Tesla vehicles that have it.

Tesla said it produced 15,390 Model S and X EVs in Q1 2020, or 25% more than it was able to deliver in that quarter. In Q4 2019, Tesla delivered 19,450 Model S and X EVs.