Tesla has decided to cut the prices of its Model S Sedan and Model X SUV in the U.S. This marks the second time the company has slashed prices for the year. It will probably not be the last either given the current economic climate and the cost of living on the rise for most people in the US.
The problem is that Tesla always positions itself as a luxury car maker. One of the problems now is that a lot of automakers new and old are now pushing into that pool of customers and it’s getting a bit competitive for most automakers who are within that market.
The Model S all-wheel drive is now available for $89,990, which is down 5.2% or about $5,000 from $94,990. The Model S Plaid is now $109,990, down 4.3% from $114,990.
The Model X all-wheel drive is going for $99,990, down 9.1% or $10,000 from $109,990. The Plaid is now $109,990, down 8.3% from $119,990.
Last week at Tesla’s investor day, held at the company’s Austin factory, CEO Elon Musk, and other leaders discussed the importance of efficient manufacturing and cost-cutting.
“The desire for people to own a Tesla is extremely high,” said Musk. “The limiting factor is their ability to pay for a Tesla.”
Tesla Models 3 and Y are still available for the $7,500 federal tax incentive in the U.S. for the rest of this month.
One of the main challenges of Tesla is to make reliable and affordable vehicles. They have been working hard on that problem over the last couple of years.
There are indeed various prototype models that have not been rigorously tested and ready for market yet but when they do and most people can afford them, Tesla will grow astronomically.
