Electric Vehicle Market Leader Continues to Drive Prices Down in Unprecedented Move
Tesla, the electric vehicle market leader, has reduced prices on its two priciest vehicles in the United States. This is the company's fifth adjustment of prices since the start of the year and is in line with CEO Elon Musk's strategy of reducing prices to increase demand. The recent price cuts ranged from 4% to 9%, with the biggest cut applied to the more expensive Model X.
Tesla has been adjusting its prices at a frequency and pace that is unprecedented in the automotive industry.This is the latest move in what many analysts believe is a price war initiated by Tesla earlier this year. The company's two cheaper models, the Model 3 sedan and Model Y crossover, account for the majority of Tesla's global deliveries. In contrast, the Model S and Model X represent only 4% of the company's deliveries.
The reductions in price for the two models range from $5,000 to $10,000, with the basic Model S now priced at $89,990 and the performance Plaid variant at $109,990. The basic AWD Model X is now priced at $99,990, while the performance Plaid version is priced at $109,990. Tesla has not yet commented on the latest price cuts.
- Tesla's price cuts come just days after CEO Elon Musk announced that recent price reductions on other models had resulted in increased demand.
- Tesla's January price cuts were seen by many analysts as the start of a price war in the electric vehicle market.
- The Model S and Model X represent a small portion of Tesla's global deliveries, with the majority of deliveries coming from the cheaper Model 3 and Model Y models.
- Tesla's frequent price adjustments go beyond what established automakers have attempted in the industry.
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