- Tesla just dropped the price of its two most expensive vehicles.
- It cut the prices of its Model X and Model S by $10,000 and $5,000 respectively.
- This is the second time that Tesla has cut the prices of these vehicles in 2023.
Tesla has cut the prices of its two most expensive vehicles for the second time in 2023 as it continues a price war.
The price of the Model S sedan has been reduced by $5,000 in the US, according to the company’s website. The basic version now costs $89,990, up from $94,990, while the Plaid performance version now costs $109,990, up from $114,990.
By the end of 2022, the base Model S will cost $104,990 and the Plaid version, $135,990.
The Model X SUV, Tesla’s most expensive vehicle, has been discounted by just $10,000 in the US, according to the company’s website. The base version is now $99,990, down from $109,990, and the Plaid variant is $109,990, down from $119,990.
Before the first price cut in 2023, the base Model X costs $120,990, and the Plaid version, $138,990.
BYD, a Chinese competitor to Tesla, has suffered a sharp drop in its stock price since Tesla began cutting prices in 2023. Car shopping website Edmunds said after first phase of price reduction that the move attracted buyers.
At Tesla’s investor day Wednesday, CEO Elon Musk SAYS: “The desire for people to own a Tesla is extremely high. The limiting factor is their ability to pay for a Tesla.”
The price cuts were met with anger by some Tesla owners who bought cars before the discounts were introduced.
The first price cuts appeared to boost Tesla’s sales. Musk said in an earnings call in late January that orders for the company’s vehicles are at an all-time high. He added that it has always been Tesla’s goal to make cars “accessible to as many people as possible.”
Tesla representatives did not immediately respond to Insider’s request for comment made outside normal business hours.