Elon Musk’s Tesla cuts prices of U.S. models to drive sales

Tesla has announced a reduction in the prices of two of its electric cars, Model S and Model X, the company’s most expensive of all its electric cars.

– A key point to note

The price cuts range from 4% on the performance version of the Model S to 9% on the more expensive Model X, Tesla announced Monday. The reductions, Tesla’s fifth adjustment since the start of the year, are for the U.S. markets.

Tesla said the reductions will enable people who desire to own its vehicles to be able to do so and will allow the company make more sales.

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Chief Executive Elon Musk said last week that the high cost of Tesla’s vehicles has limited many from buying the automobiles.

“The desire for people to own a Tesla is extremely high. The limiting factor is their ability to pay for a Tesla,” Musk said.

Musk in recent months has repeatedly said that the company will drive more demand by bringing down the prices of its products.

Tesla introduced discount sales of up to 20% in their cars this year and it has perhaps driven more success for the company.

The Model S and Model X, which come in base all-wheel drive (AWD) and performance “Plaid” editions, represented about 4% of Tesla’s global deliveries in 2022. Its two cheaper models, the Model 3 sedan and Model Y crossover, made up the remaining list.

The prices of both editions of Model S were reduced by $5,000.

While the basic version of Model S was cut by 5% to $89,990 the selling price of the performance, Plaid variant, was cut 4% to $109,990.

Prices on Tesla’s website show that the prices of both the performance and basic variants of Model X cars were cut by $10,000 and the price of the basic, all-wheel-drive (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.

Tesla has a new version of the Model 3 codenamed “Highland” scheduled to go into production later this year and a change to the Model Y codenamed “Juniper” for next year, Reuters reported Monday.