The big picture: Tesla has lowered the price on its two most expensive EVs in a bid to make its premium models accessible to more buyers. The cuts range from four percent to nine percent, and could signal the start of a price war in the EV industry.
Tesla’s standard Model S sedan now starts at $89,990 after a five percent price cut of $5,000. Similarly, the Model S Plaid is now $5,000 cheaper and starts at $109,990. The Plaid is a higher-performance version of an already quick EV, boasting an eye-watering 0-60 mph time of 1.99 seconds and a top speed of 200 mph with an EPA estimated range of 396 miles on a single charge.
The Model X SUV, meanwhile, saw a bigger $10,000 price cut across both variants. The standard model can now be had for $99,990 with the performance-minded Plaid starting at $109,990.
According to Reuters, they represent the fifth price adjustment since the start of 2023.
During Tesla’s investor day earlier this month, CEO Elon Musk hinted that additional price cuts could be in the cards. “The desire for people to own a Tesla is extremely high. The limiting factor is their ability to pay for a Tesla,” he noted.
The EV maker’s stock has been on a roller coaster ride since late last year. In mid-September, shares were trading at just over $300 but by the end of December, the stock had lost about two-thirds of its value and was down to $109. The road to recovery has been slow but steady ever since as shares are flirting with the $200 mark as of this writing.
It’s worth mentioning that while the Model S and Model X are Tesla’s higher-end vehicles, they aren’t the company’s bread and butter. In 2022, Tesla delivered just 66,705 Model S / X vehicles compared to 1,247,146 examples of the more affordable Model 3 and Model Y.
Looking ahead, Tesla is working on a new version of the Model 3 that’s scheduled to enter production later this year. Changes are also in store for the Model Y in 2024 along with full production of the Cybertruck.
Image credit: Model S by Bruno Martins, Interior by Ivan Kazlouskij