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Tesla has announced the launch of more affordable versions of its Model S sedan and Model X SUV in the U.S. and Canada. While these new models come with shorter driving ranges, deliveries will start next month.

The new Model S “standard range” will cost ,490 and offer a range of up to 320 miles (515 kilometers). This is significantly shorter than the more expensive regular dual-motor and tri-motor Plaid versions, which have ranges of 405 miles and 396 miles respectively.

Similarly, the new Model X will have a price tag of ,490 and a range of 269 miles (433 kilometers), again, much shorter than the 348 miles (560 kilometers) offered by its pricier variant.

Both new vehicles will share the same battery and motors as the dual-motor variants, which are priced ,000 higher. However, the performance and range of the more affordable options will be limited through software.

Tesla hopes that these lower price points will appeal to first-time electric vehicle buyers who have been deterred by the relatively high cost of such vehicles compared to alternatives.

This move follows multiple rounds of price cuts implemented by Tesla across its models as it seeks to maintain strong sales in an increasingly competitive electric-vehicle market.

In its recent financial report for the quarter ending June 30, Tesla delivered a record-breaking 466,140 vehicles globally, surpassing Wall Street expectations. It delivered over 1.3 million vehicles worldwide last year and stands as the top EV maker in the U.S. However, competition is growing in its second-largest market, China, where local automakers like BYD have a loyal customer base.

Tesla’s CEO mentioned in July the potential for further price reductions due to the economic uncertainties caused by the global economy. However, at that time, there was no mention of the new Model S and Model X variants that were unveiled this week.

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