Published , by Morgan Shaver
Published , by Morgan Shaver
Tesla is reducing the price of several of its vehicles including the Model S, Model X, and higher-end Plaid models. Reductions in price are as much as 9 percent for the Model X, which will now start at a price point of $99,990 (USD), and 5 percent for the Model S which now starts at $89,990.
The Plaid models are getting price cuts as well with the Plaid Model S and X now starting at $109,990. This brings the price of the Plaid Model S down by 4 percent and the Model X Plaid down by 8 percent. Tesla’s latest reduction in prices follows a significant price slash seen back in January that brought the prices of its new cars down by as much as 20 percent.
As a result of Tesla’s aggressive price cuts in January, a price war was ignited among car manufacturers looking to compete by lowering their prices as well, as reported by outlets like CNBC. For example, following Tesla’s reductions in January companies like Ford followed suit, lowering the price of its Mustang Mach-E by up to 8 percent.
"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," Dan Ives, managing director of equities at Wedbush Securities, told CNBC. "This is an EV arms race playing out and Tesla has the margins to make price cuts and still be well above other automakers. In this economic cloudiness Tesla needs to rip the band-aid off and cut prices and the Street will like this."
Now that you’re caught up with Tesla’s latest batch of price cuts, be sure to read through some of our previous coverage including how Tesla's new Mexico factory may be double the size of the one in Texas, and Musk previously stating that the affordability of next-gen Tesla EVs is more of a concern than cannibalization.