The reductions vary between 4% for the performance edition of the Model S and 9% for the pricier Model X
Tesla has reduced the prices of its two priciest electric vehicles in the United States, as per the company’s website. This move comes shortly after the CEO, Elon Musk, mentioned that the preceding price reductions had increased the demand for other models. The latest round of price adjustments is the fifth one made by Tesla since the beginning of this year, with the cuts ranging from 4% on the Model S’s performance version to 9% on the higher-priced Model X.
In recent months, Musk has emphasized on Tesla’s strategy to lower prices to increase demand. He mentioned that Tesla’s introduction of global discounts in January had resulted in a significant increase in orders. Musk highlighted that people have a strong desire to own a Tesla, but the main barrier is affordability. During Tesla’s investor day last week, he mentioned that Tesla’s goal is to make their vehicles more accessible to a larger audience.
There was no prompt response from Tesla regarding the latest price reductions, despite the fact that the company had previously reduced prices on its vehicles in all markets in January, providing discounts of as much as 20%. This move was interpreted by many experts as the beginning of a price battle by the top electric vehicle manufacturer. Tesla has continued to adjust its prices at an unprecedented speed and regularity, surpassing what conventional automakers have tried to achieve in an industry where the fundamental cost of a car is still known as the “sticker price” on a vehicle in stock.
In 2022, Tesla’s global shipments consisted primarily of its less expensive models, the Model 3 sedan and the Model Y crossover, while the Model S and Model X, which were available in standard all-wheel drive (AWD) and high-performance “Plaid” versions, accounted for approximately 4% of deliveries. According to Tesla’s website, the company lowered prices for both versions of the Model S by $5,000. The basic Model S version was reduced by 5%, to $89,990, while the performance-oriented Plaid variant was reduced by 4%, to $109,990.
According to Tesla’s website, the prices of both the standard and high-performance versions of Model X cars were reduced by $10,000. The base all-wheel drive (AWD) version of the Model X saw a 9% reduction in its price, now priced at $99,990, while the high-performance Plaid variant received an 8% reduction, now priced at $109,990.
As per Reuters, Tesla is planning to introduce a new version of the Model 3, referred to as “Highland,” which is set to commence production later this year. Additionally, the company is preparing to modify the Model Y, dubbed “Juniper,” for next year.
