A week after calling others’ desire to own Tesla vehicles nearly “infinite,” the automaker on Monday slashed prices for its Model S and Model S sedan and SUV by nearly 10% to spur demand. The luxury sedan and SUV still hover at $90,000 or more and don’t qualify for federal EV tax breaks—even under the Inflation Reduction Act, although the Tesla Model 3 and Model Y do.
An all-wheel-drive Tesla Model S now starts at $91,380, including mandatory destination fees, which is $5,000 less than before. A Model X costs $101,380, including destination, which is $10,000 less. Model S and Model X Plaid models were similarly reduced by $5,000 and $10,000, respectively, and are significantly less than they were in January, by $26,000 and $29,000.
Since early January, prices for all Tesla models have dropped between 6% and 20%, according to Reuters, although the prices for the Model 3 and Model Y have fluctuated up and down in the same period.
The price reductions for the Model S and Model X follow the company’s investor day last week where the automaker outlined its plans for growth in charging, home energy storage, and sustainability, but with little news about new models from Tesla. The company said affordability remained its most limiting factor to entice new buyers but said it would offer a cheaper next-generation car while it drove its manufacturing costs down.
Tesla’s priciest Model S and Model X cars haven’t qualified for federal tax benefits for several years now, although versions of the Model 3 and Model Y do. Last year, the company missed its delivery targets by 50%, but Tesla CEO Elon Musk said the automaker would deliver 2 million vehicles in 2023 as price cuts boosted demand for their vehicles worldwide. In other countries, new prices for Teslas have dropped by up to 18%.
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