Tesla Inc has reduced the prices of two of its most expensive electric vehicles, Model S and Model X, in the United States. This is Tesla’s fifth adjustment since the start of the year. It ranges from 4 percent on the performance version of the Model S to 90 percent on the Model X.
In recent months, Elon Musk has said that Tesla would focus on bringing prices down to push up demand. It has seen fruit with an increase in orders. At Tesla’s investor day last week, Musk said the desire for people to own a Tesla is extremely high. He acknowledged that the limiting factor is their ability to pay for a Tesla.
In January, the company cut prices on its EVs across all of its markets. Tesla offered discounts of up to 20 percent, igniting what market watchers called a price war.
It should be noted that the prices of Model S and Model X represented about 4 percent of the company’s global deliveries in 2022. The Model 3 sedan and Model Y crossover, Tesla’s two cheaper models, made up the rest. Moreover, the company’s portal highlighted that it had also slashed prices of both versions of its Model S by $5,000, and the basic model of Model S was reduced by 5 percent to $89,990; the Plaid variant was reduced by 4 percent to $109,990.
There was a $10,000 reduction in prices of both the performance and basic variants of Model X cars, the basic AWD version of the Model X was cut by 9 percent to $99,990 and the Plaid version saw an 8 percent cut to $109,990.
The price cut may boost Tesla shares which have surged 60 percent year to date. But it is still down about 30 percent over the past 12 months.