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Tesla Motors cuts starting price of Model X SUV to $74,000

Tesla Model X
A Tesla Motors executive displays the Model X in Fremont, Calif., on Sept. 29.
(Marcio Jose Sanchez / Associated Press)

Tesla Motors Inc. on Wednesday cut the starting price of its Model X to $74,000 for a more limited-range version of its sport utility vehicle as the electric carmaker tries to boost sales.

The new Model X 60D has a range of 200 miles, compared with 237 miles for its prior entry-level version, the 75D. That car costs roughly $9,000 more.

Top-level versions of the Model X, which have added range and faster acceleration, can cost more than $100,000.

With the 60D, customers have “the flexibility to choose the Tesla model, price point and range that best fits their lifestyle,” Tesla said.

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The price cut follows Tesla’s report this month that its second-quarter global deliveries of 14,370 — including 4,625 Model X vehicles — fell short of expectations. Tesla also has struggled with ramping up production of the Model X, which debuted last fall.

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The Palo Alto-based carmaker faces several other problems. Federal safety authorities are investigating the company’s autopilot feature after the May 7 death of a driver who was using the autonomous technology when his Tesla Model S sedan crashed in Florida.

The Securities and Exchange Commission also is reportedly looking at whether Tesla erred in not disclosing the fatality to investors.

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Tesla’s stock closed down $2.12, or 0.9%, at $222.53 on Wednesday.

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Tesla is said to be under investigation by the SEC for failing to disclose a fatal crash


UPDATES:

1:41 p.m.: This article was updated with Tesla’s closing stock price. 

This article was originally published at 9;51 a.m.

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