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Tesla is overhauling pricing and naming for Model S and X

Tesla is abandoning the kilowatt designations for its models that it's employed for ages, instead adopting the naming conventions it started with the Model 3.

Models S and X buyers will have the option to buy cheaper, entry-level models now and upgrade via software later.

Manuel Carrillo III/Roadshow

Tesla is making some significant changes to the way that its Model S and Model X are going to be sold going forward. The company announced Tuesday that it would be ditching its long-standing tradition of designating the various trim levels with battery kilowatt ratings, and instead going to a more Model 3-like naming structure.

The currently offered trim levels on Models S and X are 100D and P100D, with 75D having received the ax a few months ago. Starting on Tuesday, the P100D will be called the "Performance" and those models equipped with Ludicrous Mode will be henceforth called "Performance with Ludicrous Mode."

But wait, there's more! Those buyers who were a little salty at being left out in the cold with the discontinuation of a lower-cost Model S or X can rejoice, because now there will be a new base trim, simply dubbed Model S or Model X. Those buyers who want more range but less power can go with Model S or X Extended Range.

The exciting thing is that the base models will feature less range and power than other models as you'd expect, but those limitations are strictly software-based. Buyers can opt at a later date to upgrade their vehicles to higher trim levels with an over-the-air software update. This way, if your needs change or you sell your app or something, you can go from base model to top-tier with just a big pile of money and a small chunk of time.

Pricing is also changing for Model S and X, in addition to the recent $2,000 drop that we reported earlier this month, Tesla is cutting a further $1,000 from the base price of all trim levels. Is it a relatively big amount? No. But it should go a little way toward easing the sting that beginning to lose the Federal EV tax incentive has caused.

These changes to the Tesla lineup are available now, and configurators for both Model S and Model X have been updated to reflect the new naming and pricing schemes.