Tesla, the American electric vehicle manufacturer, has cut the prices of its high-end Model S and Model X electric cars by $5,000 and $10,000, which is 5.2% and 9.1%, respectively. This is the second time this year that the car company has reduced the prices of these models, indicating its determination to increase sales volumes.
As per the changes, the Model X has seen a price drop of $21,000 from $120,990 at the beginning of the year to just $99,990. On the other hand, the Model S has fallen from $104,990 to $89,990 since January 1st, a steep $15,000 reduction.
It should be noted that neither of these cars qualifies for Federal Tax rebates, which are set to expire later this month. These tax rebates only apply to SUVs priced below $80,000 and cars under $55,000. However, the reduced prices are likely to appeal to many customers who have been considering purchasing a Tesla vehicle but were previously hesitant due to the prices.
Tesla CEO Elon Musk has previously stated that “the desire for people to own a Tesla is extremely high… the limiting factor is their ability to pay for a Tesla.” The recent price reductions on the Model S and Model X are likely aimed at making these vehicles more accessible to potential buyers.
It is worth noting that most Model 3 and Y vehicles do qualify for the tax rebates due to Tesla’s January price cuts on these models. However, after mid-March, the rules will change, and many EVs that currently qualify may become ineligible.
The recent price reductions on Tesla’s high-end Model S and Model X electric cars are a strategic move by the company to increase sales volumes in this segment of the market. While these vehicles do not qualify for Federal Tax rebates, the reduced prices are likely to appeal to many potential buyers, especially those who have been considering purchasing a Tesla but were previously deterred by the high prices.