Tesla has reduced prices on two of its most expensive models in the US, continuing its trend of discounting vehicles to increase demand. CEO Elon Musk praised the effect of price cuts on demand at Tesla’s Investor Day, and the company has now discounted the Model S and Model X. The Model X will see a 9% reduction, starting at $99,990, while the Model S will start at $89,990, a 5% discount. Both models offer expanded all-wheel drive, with the Model X AWD discounted by nearly $10,000 and the Model S AWD by around $5,000. Tesla also offers a premium “Plaid” version of its Model S and Model X series, with prices as low as $109,990, marking a 4% discount. This is Tesla’s fifth pricing change in 2023, and many view the recent spurt of price cuts as the beginnings of an EV pricing war.
“The price cuts Tesla has already implemented globally has catalyzed demand by 30% out of the gates as this latest price cut is another smart move,” said Wedbush Securities managing director of equities Dan Ives. “This is an EV arms race playing out and Tesla has the margins to make price cuts and still be well above other automakers.”
Musk has been driving up demand for his vehicles, especially following reaction to last week’s Investor Day. Despite Musk’s enticing vision for the long-term outlook of the company, the short-term has left many investors weary as the competition begins to heat up.
BREAKING: @Tesla has reduced the starting prices of the Model S & Model X in the US.
• Model S AWD: $89,990 (from $94,990)
• Model S Plaid: $109,990 (from $114,990)
• Model X AWD: $99,990 (from $109,990)
• Model X Plaid: $109,990 (from $119,990)Model S/X Plaid are now the… https://t.co/VnACjToNMG pic.twitter.com/YACFu3BCS2
— Sawyer Merritt (@SawyerMerritt) March 6, 2023