Tesla cuts Model S, Model X & Model Y prices by $2,000

Tesla cuts Model S, Model X & Model Y prices by $2,000

In a tactical move aimed at boosting demand and adjusting production, American multination electric automotive giant Tesla has once again trimmed down the prices of three of its EVs, viz. the Model S, Model X and Model Y, in the United States.

The Austin, Texas-headquartered electric car maker has officially confirmed that the prices of the Tesla Model S, Model X, and Model Y have been reduced by $2,000 each.

Notably, the strategic move of price reduction has now brought the all-electric Tesla Model Y crossover SUV to its lowest price ever. It is also worth-mentioning here that the latest price change has been announced by the company following a difficult first quarter (Q1), when the company’s production of BEVs as well as their deliveries to customers slipped year-over-year. The gap between the production and deliveries led to a noticeable increase in inventory.

The Tesla Model S battery-electric executive car now comes with a starting price tag of $72,990 (excluding an obligatory charge of $1,640). This starting price of the BEV marks a reduction of 2.7 per cent.

When it comes to the Tesla Model X, the price reduction of $2,000 means that the vehicle is now available at a discount of 2.5 per cent than before, depending on the version. The base variant of the Model X battery-electric mid-size crossover SUV now starts at $77,990 (excluding destination fees).

Finally, comes the world-renowned Tesla Model Y electric crossover SUV. With a price cut of $2,000, it is now available with a starting price tag of just $42,990, roughly 4.7 per cent less than before. In fact, this model’s prices have fluctuated a lot more than the prices of other models. On 1st of April, the company had increased its price by $1,000, following a momentary reduction. The Model Y is Tesla's most important model, simply because it accounts for the majority of the brand’s overall sales.

The availability of the U.S. federal government’s federal tax credit of $7,500 makes all of these three BEVs even more appealing. For instance, the full tax credit brings the Model Y’s effective starting price down to just $37,130. It may be noted here that the aforementioned federal tax credit is available only to EVs under $80,000.

The latest price cuts highlight Tesla’s proactive approach to maintain competitiveness and adapt to changing market conditions, while also exerting pressure on rivals.

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