Tesla has reduced the prices of its two most pricey electric vehicles in the United States, per its official online configurator.
The news comes just a few days after Tesla’s chief executive, Elon Musk, stated that the latest price drops on other models had hyped demand.
The price reductions, which represent the fifth alteration made by Tesla since the beginning of the year, varied from 4% on the performance variant of the Model S to 9% on the more pricey Model X.
Tesla to continue price cuts
Musk has stated over the past few months that Tesla will focus on lowering costs to drive demand. The company is succeeding in igniting orders by introducing worldwide discounts in January.
“The desire for people to own a Tesla is extremely high. The limiting factor is their ability to pay for a Tesla.”
Tesla CEO Elon Musk said last week at Investor Day
In January, Tesla cut the prices of its EVs across all of its markets. It offered discounts of up to 20 percent, which many industry analysts saw as the beginning of a price war by the company leading the electric vehicle market.
Since then, they’ve been adapting prices at a rate and regularity that exceeds what founded automakers have tried in an industry where a car’s initial price is still termed a “sticker price” on a stock vehicle.
Tesla added discounts on its EVs
In 2022, the Model S and Model X, offered in standard all-wheel drive (AWD) configurations in addition to performance-oriented “Plaid” editions, accounted for approximately 4% of Tesla’s total global deliveries.
The remainder comprised its two more affordable models, the Model 3 sedan and the Model Y crossover.
On its website, Tesla revealed that it had reduced the prices of both Model S variants by $5,000.
The price of the standard variant of the Model S was decreased by 5%, bringing it down to $89,990. In contrast, the price of the performance-oriented Plaid variant was reduced by 4%, bringing it down to $109,990.
A price reduction of $10,000 was made to both the performance and basic models of the Model X car. The price of the Model X in its most basic configuration, with all-wheel drive (AWD), was reduced by 9% to reach $99,990. Meanwhile, the price of the Model X in its Plaid configuration was reduced by 8% to reach $109,990.
Reuters reports that Tesla plans to produce a new Model 3 variant with the codename “Highland” by the end of this year. Additionally, the company intends to modify Model Y with the codename “Juniper” in the coming year.
See Also
- Tesla price cuts result in ‘significant cancellations’ for China EV brands
- Tesla’s price cuts intensified the ‘price war’ among EV makers, affecting suppliers
- Tesla pre-owned car prices slashed by $18,000 after price cuts up to 20% in key markets
- Due to “Macroeconomic Uncertainty,” Tesla plans additional price cuts
- Tesa ramps up service hiring as demand increases amid price cuts
