Tesla, the American electric vehicle manufacturer, has once again reduced the prices of its high-end Model S and Model X electric cars. The company has cut the prices of these models by $5,000 (5.2%) and $10,000 (9.1%), respectively, as reported by TechCrunch. This marks the second time this year that Tesla has lowered the prices of these vehicles, suggesting a concerted effort to increase sales volumes in this segment of the market.
According to the changes on Tesla’s website, the Model X has seen a significant price drop of $21,000, from $120,990 at the beginning of the year to just $99,990 currently. Similarly, the Model S has fallen from $104,990 to $89,990 since January 1st, a steep $15,000 reduction.
It is important to note that neither of these cars qualifies for Federal Tax rebates, which are set to expire later this month. These rebates only apply to SUVs priced below $80,000 and cars under $55,000. Nonetheless, the reduced prices are likely to appeal to many customers who have been considering purchasing a Tesla vehicle but were previously deterred by the high price tag.
Tesla CEO Elon Musk has previously acknowledged that the cost of Tesla vehicles is a limiting factor for potential buyers, stating that “the desire for people to own a Tesla is extremely high… [but] the limiting factor is their ability to pay for a Tesla.” Therefore, the recent price cuts on the Model S and Model X are likely aimed at making these vehicles more accessible to a wider range of customers.
It is worth noting that most Model 3 and Y vehicles do qualify for the tax rebates due to Tesla’s January price cuts on these models. However, the rules are set to change after mid-March, and many EVs that currently qualify may become ineligible.
In summary, Tesla’s recent price reductions on its high-end Model S and Model X electric cars are a strategic move by the company to increase sales volumes in this segment of the market. While these vehicles do not qualify for Federal Tax rebates, the reduced prices may appeal to many potential buyers who were previously deterred by the high prices, aligning with Tesla’s goal of making electric vehicles more accessible to a wider range of customers.
