The reductions come just days after Elon Musk announced plans to increase production. Earlier price cuts caused a surge in demand.
Tesla has lowered the price of its most expensive EV models in the US, reducing the cost of a new Model S by up to five percent and Model X by up to ten percent. The pricing updates are already reflected on the Tesla website, and as Reuters reports, come just days after Chief Executive Elon Musk announced plans to increase production at Tesla’s Shanghai facility in order to meet the soaring demand caused by previous price cuts.
Following the latest cuts, a new Tesla Model S Plaid and Model X Plaid — the performance versions for both vehicles — now share the same price of $109,990. Meanwhile, the base Tesla Model S AWD is now $89,990, down from $94,990. When Tesla first unveiled its redesign for the vehicle back in January 2021, Model S prices started at $79,990.
A before and after comparison of Tesla Model X and Model S vehicle prices in the US.
This is the second time this year that Tesla has made significant reductions to its prices, having cut the cost of its Model Y, Model X, and Model S vehicles back in January by up to 20 percent. Following those initial reductions, Musk has since expressed plans to halve production costs for future EVs during Tesla’s Investor Day on March 1st. “The desire for people to own a Tesla is extremely high,” said Musk. “The limiting factor is their ability to pay for a Tesla.”
The EV producer has regularly tampered with its vehicle pricing over the last few years, having previously made increases across its entire range several times between 2021 and 2022. The recent price cuts haven’t been especially welcome by existing buyers, however. Protests were staged in China earlier this year following reductions of up to 17 percent in the region, with Tesla customers who had purchased at the higher price demanding refunds. Some Tesla owners in the US were also displeased with similar price cuts, with existing customers citing concerns regarding the sudden loss in vehicle value.