Tesla Cuts Model S and Model X Prices Again, but the EVs Are Still Expensive

Tesla Model S outside the showroom

How much does a Tesla cost? It sounds like a simple question, but Elon Musk’s electric car company has revised its pricing so much this year, it’s a little hard to keep up.

In the latest change, Tesla cut the prices of its Model S and Model X by between 4% and 9% depending on the specific vehicle type. Both versions of the Model S are now $5,000 cheaper—a 5% drop for the standard, which now costs $89,000. While the higher-performance “Plaid” variant for the Model S is now $109,990, that’s a 4% decrease.

The cuts on the Model X crossover were even steeper—both versions were cut by $10,000. The standard is now $99,990, which equates to a 9% reduction. the
The inscribed variant is now $109,990, which equates to an 8% reduction.

The changes affect vehicles sold in the United States and are already effective on the Tesla website. They were first mentioned by the company’s investors and others on Twitter.

back in january, Tesla has cut the prices of its cars in the US and Europe by up to 20%. Depending on the vehicle model and location. These earlier cuts affected all of the company’s models, and if you include those changes, the cost of the Model S or Model X It has decreased by between 14% and 21% since the beginning of 2023, according to a report From bloomberg.

The price changes come less than a week later Tesla Investor Day and Musk’s “Master Plan 3” presentation. for the company During the event, the billionaire highlighted several cost-cutting strategies that Tesla has developed in the car production process – making it cheaper for the company to manufacture its cars. Musk also noted that price cuts earlier in January had boosted customers’ willingness to buy cars. “We find that even small changes in price have a huge impact on demand, very large,” said the CEO.

Presumably, this latest round of cuts is meant to boost demand again. The boost in orders for the Model X and S may not have met expectations or matched the appetite for the company’s other cars.

The desire to own a Tesla is very high. The limiting factor, the CEO said, is their ability to pay. Musk added that the desire to own one of his company’s cars is “indistinguishable from the infinite” and that the demand for its prices is “insane” because Tesla is lowering its prices.

Even so, even with thousands of dollars removed from Tesla’s price tags, the vehicles are still too expensive for most people. Tesla’s cheapest model, the Model 3, starts at $42,990. Compare that to the Chevy Bolt, Nissan Leaf, and Mini Cooper SE All under $30,000. And as these truly affordable options emerge, Tesla faces increased market competition — with its longstanding dominance under threat.

Originally , 2006 Tesla Master PlanMusk promised that his company would gradually produce cheaper electric cars, making them more affordable for a wide range of consumers. In recent years, the billionaire has hinted at $25,000 Tesla EV – Often referred to as the “Model 2.” However, that price point is still a long way off, and Musk didn’t provide any updates for such a car as part of last week’s presentation.

Gizmodo has reached out to Tesla for comment via Twitter and email, but the company did not immediately respond. Instead, Gizmodo received an error email. “The recipient’s mailbox is full and cannot accept messages right now. Please try to resend your message later, or contact the recipient directly.” Tesla Dissolve the public relations department Back in 2020. Since then, the company has rarely responded directly to questions from journalists.


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