- Tesla just slashed the prices of its two most expensive vehicles.
- It cut the prices of its Model X and Model S by $10,000 and $5,000 respectively.
- It’s the second time Tesla has cut prices on these vehicles in 2023.
Tesla has slashed the prices of its two most expensive vehicles for the second time in 2023 as it forges ahead with a price war.
The price of the Model S sedan has been lowered by $5,000 in the US, according to the company’s website. The basic version now costs $89,990, down from $94,990, while the Plaid performance version now costs $109,990, down from $114,990.
At the end of 2022, the basic Model S cost $104,990 and the Plaid version, $135,990.
The Model X SUV, Tesla’s most expensive vehicle, was just discounted by $10,000 in the US, according to the company’s website. The basic 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 of 2023, the basic Model X cost $120,990, and the Plaid version, $138,990.
BYD, a Chinese competitor to Tesla, has suffered a sharp stock price decline since Tesla began cutting prices in 2023. Car-shopping website Edmunds said after the first round of price cuts that the move had lured buyers.
At Tesla’s investor day Wednesday, CEO Elon Musk said: “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 have been met with anger by some Tesla owners who purchased vehicles just before the discounts were introduced.
The earlier price cuts appeared to boost Tesla’s sales. Musk said in an earnings call late January that orders for the company’s vehicles were at their strongest ever. He added that it has always been Tesla’s goal to produce cars that were “affordable to as many people as possible.”
Representatives for Tesla didn’t immediately respond to Insider’s request for comment made outside normal business hours.