Tesla has slashed the local pricing on its Model S and Model X flagship models.

Just a day after the news of a new lower priced Model 3 variant, the company has cut driveaway pricing on the top of the range P100D models by over $80,000.

Driveaway pricing for a Model S P100D on carsales is $248,112 based on a Melbourne metro postcode. Today on the Tesla Australia configurator, the same car has been repriced to $165,529. The difference is $82,583.

Looking at the Model X SUV range flagship, also badged P100D, the driveaway price has been cut from $258,402 to $172,502. That’s an even larger reduction than the sedan -- $85,900!

While there may be some differences in specifications between the generic vehicle shown on carsales New car Showroom and the Tesla configurator, the changes would only be minor.

Proportionally large price cuts have been made to other Model S and Model X variants.

Tesla this week announced it would move away from retail stores to an online only sales model. It’s not clear yet whether this US-market move will be reflected here, but it’s highly likely.

Tesla tweeted details of similarly large price cuts to its US market cars this morning (March 2).

It’s not clear how the electric vehicle manufacturer will handle the fallout from the likely significant drop in value of used Model S and Model X. Nor how customers who have financed new Model S and Model X will fare.

UPDATE

In answer to a number of questions regarding the price cuts, Tesla Australia stated: "In regards to the Model S and Model X price changes, this is addressed in the blog post [Ed: see links hereabouts] which includes the below: 'Shifting all sales online, combined with other ongoing cost efficiencies, will enable us to lower all vehicle prices by about 6% on average, allowing us to achieve the $35,000 Model 3 price point earlier than we expected.'"