Tesla, Inc. TSLA has lowered the prices of its Model X and S vehicles in the U.S., following up on an earlier price cut implemented in mid-January.
What Happened: Updated price information on Tesla’s website showed price reductions in the range of 4.4%-9.1% for the Model X crossover SUV and the Model S liftback sedan.
Here are details of the price changes for these premium models of the Austin Texas-based company:
- Model X dual motor, all-wheel drive: $99,990, down 9.1% from $109,990
- Model X Plaid tri-motor AWD: $109,990, down 8.3% from $119,990
- Model S dual-motor AWD: $89,990 down 5.3% from $94,990
- Model S Plaid tri-motor AWD: $109,990 down 4.4% from $114,990
With the price adjustment, the Plaid versions of the Model X and S now cost the same.
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Why It’s Important: The most recent price cuts come on the heels of a previous round of cuts announced in early January when the prices of all the models and trims were reduced. The January cuts for the Model S and Model X cars ranged from 9.09% to 15.44%.
Incidentally, after taking down prices of its Model 3 and Y vehicles in January, Tesla raised the prices of the rear-wheel drive variant of the Model 3 sedan and both the trims of the Model Y SUV.
A tweet shared by Troy Teslike, a Twitter user who tracks estimates for Tesla, said that the EV maker lowered prices of unsold cars in Europe by 6%. Sharing screenshots of pricing in Germany, France and the U.K., he said these vehicles were imported ones from China.
Tesla can afford to bring down the prices of its vehicles without hurting margins due to the drivetrain efficiency it has achieved, Ark Investment Management CEO Cathie Wood said recently. At the Investor Day held last week, the Elon Musk-led company announced several breakthrough innovations that will likely improve production efficiency further.
The cuts will also likely help to stimulate the demand for electric vehicles, which sagged in 2022 amid trying economic conditions.
Tesla closed Friday’s session up 3.61% at $197.79, according to Benzinga Pro data.
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Image and article originally from www.benzinga.com. Read the original article here.