Days after CEO Elon Musk claimed that previous price reductions on other models had fueled demand, Tesla has reportedly lowered pricing on its two most costly electric vehicles in the United States, according to the company’s website.
The price reductions, Tesla’s fifth since the year’s beginning, varied from 4% on the Model S’s performance model to 9% on the more expensive Model X.
Musk has stated time and time again in recent months that Tesla will prioritize lowering prices to increase demand and that the company has seen success in generating orders with the introduction of worldwide discounts in January.
“The desire for people to own a Tesla is extremely high. The limiting factor is their ability to pay for a Tesla,” Musk said last week at Tesla’s investor day.
A request for comment regarding the most recent price reductions was not immediately answered by Tesla.
In January, Tesla lowered prices on its vehicles in all of its territories, offering discounts of up to 20% in what many analysts believed to be the beginning of a price war by the leader in the electric vehicle industry.
In an industry where a car’s base price is still referred to as a “sticker price” on a vehicle in inventory, it has been changing pricing since with a pace and regularity that exceeds anything established automakers have attempted.
The Model S and Model X, which are available in performance “Plaid” and base all-wheel drive (AWD) models, accounted for around 4% of Tesla’s global deliveries in 2022.
The rest was made up of its two less expensive vehicles, the Model 3 sedan and Model Y crossover.
According to Tesla’s website, both versions of the Model S now cost $5,000 less. The price of the performance, Plaid variation of the Model S was reduced by 4% to $109,990, while the price of the entry-level version was reduced by 5% to $89,990.
Model X prices have been reduced by $10,000 for both the performance and entry-level models, according to the website of the electric car manufacturer.
The price of the Model X’s entry-level AWD model was reduced by 9% to $99,990, while the performance Plaid model had an 8% price reduction to $109,990.
According to Reuters, Tesla will launch a revised model of the Model 3 code-named “Highland” later this year and a modified Model Y code-named “Juniper” for the following year.
