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Tesla Cuts More Models’ Prices

Adjustments part of industry price war it started as it looks to increase demand.

March 6, 2023
Tesla Cuts More Models’ Prices

Model X base price was slashed about 9% to just under $100,000.

IMAGE: Pixabay/lobpreis

1 min to read


Tesla cut the prices of its most expensive models in order to drum up more business, further stoking a price war it started with aggressive price adjustments in January.

The Model S sedan’s base price fell about 5% to a hair under $90,000, according to its website, and the Model X sports utility vehicle’s base price dropped about 9% to just under $100,000.

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The cuts follow those it made to its top-selling models, the Model Y and Model 3, in January, of 20% and 14%, respectively. Some analysts theorized that it did so to help buyers qualify for a federal tax credit, to better compete with rivals, and to counter falling demand.

Since Tesla started cutting prices, other carmakers have followed suit, including Ford, which dropped its electric Mustang Mach-E price up to 8%.

Tesla appears to be making moves to cut production costs to match the price decreases, including working to create an EV motor that doesn’t require the types of materials that have been in short supply during pandemic-fueled shortages.

DIG DEEPER: Tesla Prices Best Rivals'

 

Originally posted on Auto Dealer Today

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