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Elon Musk-run Tesla on Friday reduced prices on the Model S and X electric vehicles, with price drops of up to 19 per cent in the US.

People can buy a Model S for a base price of $74,990, $3,500 less than its earlier lowest price, or a Model X for $79,990, $8,500 less, reports Electrek.

“That puts the Model X below the SUV cap, making it eligible for the US Federal EV Tax Credit, said the report

The “base model” now has the larger battery, with an estimated EPA range of 405 miles for the S and 348 miles for the X. 

“All paint colours are now included in the base price, so you’re no longer locked to a single ‘standard’ paint colour if you want the base price. You can choose between white, black, grey, blue, or red for free,” the report mentioned.

Tesla said that a reduction in credit availability is likely to happen at the end of this year.

Plaid versions of both vehicles have also been lowered in price as well, from $108,490 earlier to $89,990.

Tesla also started taking orders for an upgraded Model 3 in China with a longer driving range that costs 259,900 yuan ($35,783), 12 per cent more expensive than the previous entry-level electric vehicle.

The new basic edition of the Model 3 can go as far as 606 kms on a single charge, 9 per cent longer than the earlier version’s 556 kms.

The long-range edition of the new Model 3, which can go 713 kms on a single charge, is selling for 295,900 yuan in the country.