Less than a week after Elon Musk said cutbacks earlier in the year had sparked interest in his company’s electric vehicles, Tesla has again slashed prices on its most expensive models in the United States. The cuts, applied to the ‘Model S’ and the ‘Model X’, have reduced the final price of the vehicle by 5.3% and 9.1%, respectively.
In this way, the ‘Model S’ can now be purchased from $89,990, while the ‘Model X’ from $99,990, as updated on the company’s website. The ‘T’ company has lowered the prices of the higher-performance versions by 4.3% and 8.3%, according to data provided by Bloomberg.
The new adjustment in the prices of his fleet – the fifth in recent months – comes a week after the American tycoon assured that he has no plans to undertake the ‘low cost’ model of around $25,000 starting, of which so much had been speculated on the market. This was announced by the CEO during the ‘Investor Day’ on March 1, where Musk expressed that the desire to own ‘teslas’ was “indistinguishable from infinity”, and that the demand “will go crazy” as the company sells more affordable cars “We’ve found that even small price changes have a big effect on demand,” he said.
Accelerate to lead prices in the EV market
However, the models that have experienced the latest price adjustment accounted for just over 5% of Teslas deliveries over the past year. Therefore, it is estimated that their cuts will have less effect on the electric vehicle market. “Tesla is sprinting in the global automotive marathon to cut costs, which can give the company a sustainable competitive advantage,” said Joel Levington, a credit analyst at Bloomberg Intelligence.
Price reductions on the ‘Model 3’ and ‘Model Y’ carried out by the Austin, Texas-based firm in January showed the difference in price between those vehicles and the average price of a vehicle in the US. is reduced more than ever. The latest cuts were prompted in part by Tesla’s desire to make those models qualify for tax credits available through the Reduction of Inflation Act. After the Biden Administration changed the way it distinguished between passenger cars and sport utility vehicles in early February.
