Tesla has reduced the prices of its Model S sedan and Model X SUV in the United States. This marks the second time that the electric vehicle manufacturer has slashed prices this year, a move that could potentially increase sales as the end of the quarter approaches.
The Model S all-wheel drive is now retailing for $89,990, a reduction of about $5,000 or 5.2% from its original price of $94,990. Meanwhile, the Model S Plaid now costs $109,990, a decrease of 4.3% from its previous price of $114,990.
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The Model X all-wheel drive is now priced at $99,990, which is a 9.1% or $10,000 reduction from its initial cost of $109,990. The Plaid version of the Model X is currently retailing for $109,990, a markdown of 8.3% from its previous price of $119,990.
This most recent reduction in price follows several other significant price cuts made by Tesla in January, bringing the total number of price reductions for the automaker to at least five within the past several months. During Tesla’s recent investor day, held at the company’s Austin factory, CEO Elon Musk and other executives emphasized the importance of cost-cutting measures and efficient manufacturing processes.
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Musk stated that while the demand for Tesla vehicles is high, the main obstacle for potential buyers is their ability to afford the luxury electric vehicles.
Notably, Tesla’s Models 3 and Y are still eligible for a $7,500 federal tax incentive in the United States for the remainder of this month.
