Tesla shaves US$10,000 off the Model X as its price war engulfs the Model S as well
Tesla is lowering the price of its performance Model S and Model X vehicles by up to US$10,000, two months after the mass Model 3 and Model Y saw a similar decrease. Of course, the prices of the Model X and Model S are much higher to begin with, so the price drop is not that significant as a percentage, but their demand is also less elastic as these are considered to be Tesla's premium cars. The two showcases of Tesla's EV technology prowess now cost as follows:
- Model S: $89,990 (from $94,990)
- Model S Plaid: $109,990 (from $114,990)
- Model X: $99,990 (from $109,990)
- Model X Plaid: $109,990 (from $119,990)
The new Model X and Model S price reductions seem designed to carry demand towards the last month of the quarter, though they are unlikely to move Tesla's Q1 revenue needle by much as the expensive models only represent about 3% of its sales. Still, it's been a while since the Model X started below a hundred grand, while the Model S price is now closer to that of the base Lucid Air trim with the single RWD motor.
The price war that Tesla started in January will mark the EV industry throughout the year, it seems, as the cost of acquiring and owning an electric car starts catching up to gas-powered mass market darlings thanks to the government's largesse. A recent breakdown of Tesla Model 3 pricing after federal tax credits and local incentives in states with generous EV subsidies like Oregon, found that the 2023 Model 3 could cost the same as a base Toyota Corolla XSE there, for instance.