Tesla vehicle prices and stock have both fluctuated widely in 2023.
In its latest move, the electric vehicle (EV) maker has dropped the prices of its two most expensive models, the Model S and X.
The Model S saw a price cut of 5.3% to $89,990, and the Model X SUV saw a 9.1% decrease to $99,990, according to the company’s website, per Bloomberg.
The Plaid versions of both the Model S and X have also seen price cuts, with the price of a Model S Plaid reduced by $26,000 compared to January. The Model X Plaid price was reduced by $29,000, or 21%, during the same time frame.
During Tesla’s investor day last week, CEO Elon Musk said the demand for Tesla was virtually unlimited and would increase dramatically once the company makes its cars more affordable, according to Zero Hedge.
According to Zero Hedge, the latest cuts for Tesla’s most expensive models, S and X, indicate that these versions might not have experienced the same uptick in demand as the Model 3 and Model Y, which saw prices temporarily reduced by as much as 20%, as previously reported by The Dallas Express.
Tesla cut prices in part to qualify some models for the federal electric vehicle tax credit, according to The Wall Street Journal.
During its investor day meeting, Musk said, “We found that even small changes in the price have a big effect on demand, very big,” Axios reported.
“These price cuts are likely to make business even more difficult, just as they are attempting to ramp production of EV offerings,” said Bank of America analyst John Murphy, per Zero Hedge.
Additionally, a Reuters report outlined Tesla’s plan to revamp its top-selling Model Y, with a code-named project “Juniper,” and its Model 3, a project codenamed “Highland.”
Rumors have also been swirling around a cheaper “Model 2” from Tesla that could be priced in the $25,000 to $ 30,000 range, according to Forbes.
