Tesla Cuts Price Of Model S and Model X - Again

The Model S and Model X have got up to a 9% price cut.

In yet another price cut maneuver, Tesla has chopped pricing on its big Model S sedan and Model X SUV. This is the latest in the string of already dramatic price cuts that started earlier this year. The Model S and X have been cut by $5,000 and $10,000 respectively, bringing the Model S to $89,990, and the Model X to $99,990. The supercar-level Model S and Model X Plaid editions are now both 109,990, interestingly enough.

Cumulatively, these are some dramatic price cuts, and should only continue to simulate demand, at least according to Elon Musk. During Tesla Investor Day on March 1, Musk claimed that demand for Teslas was “near infinite,” yet the brand has chosen to chop pricing. The Model S and Model X Plaid editions are more than $25,000 cheaper now than they were in January. That’s a boon to potential Plaid buyers, but is this necessarily good for the brand? Some have insisted that the brand cutting pricing on all of its models, is actually a way to stave off softening demand.

Fundamentally, the Model S, X, Y, and 3 are older vehicles with minimal updates. There have been incremental updates under the skin, but by comparison to a traditional OEM, Tesla hasn’t done a full body change or redesign as customary by other manufacturers. Many thought that Tesla would unveil the rumored-to-be-updated Model 3 and Model Y at the Investor Day, but the brand didn’t.

This is the fifth price change Tesla has done to its lineup this year.

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