American Automotive Company, Tesla Cuts Prices For Its U.S. Model S And Model X Vehicles
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American multinational automotive, artificial intelligence, and clean energy company, Tesla, Inc. has announced price cuts for its U.S. Model S and Model X vehicles.
These are two of the most expensive electric vehicles in the United States.
The Chief Executive Officer of Tesla, Elon Musk recently revealed that the price cuts on other models had stoked demand.
Since the start of the year, this is the company’s fifth price adjustment. It ranged from 4% on the performance version of the Model S to 9% on the more expensive Model X.
In recent months, Mr Musk opened up on his outfit’s focus to bring down prices with an aim of driving demand and that it had seen success in sparking orders with global discounts introduced in January.
“The desire for people to own a Tesla is extremely high. The limiting factor is their ability to pay for a Tesla,” Musk said at Tesla’s investor day last week.
In January, the company headquartered in Austin, Texas, slashed prices on its cars across all of its markets. They offered discounts of up to 20% in what many analysts saw as the start of a price war by the electric vehicle market leader.
Since then, prices have been adjusted with a pace and frequency that goes beyond what the established automaker company have attempted in an industry where a car’s base price is still referred to as a “sticker price” on a vehicle in inventory.
Tesla’s Model S and Model X, which come in base all-wheel drive (AWD) and performance “Plaid” editions, represented about 4% of its global deliveries in 2022. The rest were made up of its two cheaper models, the Model 3 sedan and Model Y crossover.
A check on the company’s website disclosed it had cut prices on both versions of its Model S by $5,000.
The basic version of Model S was cut by 5% to $89,990, while the price of the performance, Plaid variant, was cut by 4% to $109,990.
According to the website, prices of both the performance and basic variants of Model X cars were cut by $10,000.
The price of the basic, AWD version of the Model X was cut by 9% to $99,990, while its performance Plaid version was cut by 8% to $109,990.