Tesla cuts the price on its two most expensive EVs

With the start of March, Tesla’s leaders have made a decision to once again re-adjust the prices of their most expensive electric vehicles for the US market. According to the company’s website, the prices for Models S and X will be reduced only days after Elon Musk, the company’s CEO, said that price reductions have a positive effect on demand.

Tesla’s new price cuts range from 4% on the performance version of Model S to 9% when it comes to Model X, which is the more expensive of the two. Over the last several months, Musk has mentioned multiple times that Tesla intends to focus on bringing the prices down in order to boost demand. So far, the company’s strategy has worked, and orders have been spiking all over the world, especially after Tesla introduced global discounts back in January 2023.

Last week, Musk repeated the company’s conclusion during Tesla’s investor day, stating that the desire for people to own a Tesla is very high. However, their ability to afford one is what is limiting them from purchasing his company’s electric car. So, come January, Tesla offered global discounts of up to 20%.

While the move was greeted with increased demand and interest from the buyers, analysts have speculated that this might be the beginning of a price war among EV creators. Tesla did not stop there, however. As mentioned, it has adjusted the prices of its cars five times in 2023 alone, with a frequency and pace that was never seen before in the auto industry.

How much do the cars cost after the price cuts?

The Model S and Model X both come in base all-wheel drive and performance “Plaid” editions. They also represent nearly 4% of the company’s global deliveries last year. Apart from those, Tesla also has some cheaper models, specifically the Model 3 sedan and Model Y crossover. These two were responsible for the rest of the deliveries in 2022.

As for the exact amount that Tesla has cut from its two top models, its website shows that both versions of Model S are now cheaper by $5,000. The basic version of Model S saw a 5% price reduction, leaving it with a price of $89,990. As for the Plaid variant, its price was cut to $109,990, going down by 4%.

As for Model X, prices of both variants were reduced by $10,000, leaving the basic Model X with a price of $99,990 after a 9% price cut, while the Plaid version saw an 8% price drop to the new price of $109,990.

Lastly, Tesla has two new versions of existing cars that are scheduled to come out in the near future. One of them is the new version of Model 3, which has the codename “Highland.” This version should come out later in 2023, while 2024 is expected to bring the new version of Model Y, which has the codename “Juniper.”