The most popular Tesla cars just became more affordable in the US.
Tesla recently dropped the prices of its Model S sedan and Model X SUV in the US to further drive the demand for these vehicles.
This price cut is the latest Tesla has done since the start of 2023, with the first occurring on Jan. 13, per Forbes. It is also the second time Tesla dropped the prices of its vehicles in the US in 2023.
MIAMI, FLORIDA - OCTOBER 21: People look at a Tesla Model Y electric vehicle on a showroom floor at the Miami Design District on October 21, 2021 in Miami, Florida. Tesla reported $1.6 billion in profits for the months of July, August, and September, a record for them.
Tesla Model S, Model X March Price Drop Details
Tesla mentioned on its official website that it is offering at least a 4% price drop for the performance version of the Model S and at most a 9% price drop on the more expensive Model X SUV following Musk's statement about focusing on bringing prices down to grow demand for the vehicles, per Reuters.
Thanks to these price cuts, the Model S all-wheel drive is now available for $89,990 - a 5.2% ($5,000) drop, while the Model S Plaid is now priced at $109,000 - a 4.3% ($114,990) discount, per Tech Crunch.
Meanwhile, the Model X all-wheel drive now has a $99,990 price tag - a 9.1% ($10,000) drop, while the Model X Plaid is not $109,990 - an 8.3% ($10,000) price cut, per Bloomberg.
Though Tesla did not immediately comment on the most recent price cuts, Musk did say that the desire for people to own a Tesla is "extremely high," and that the current limiting factor is their ability to pay for one. Additionally, Tesla launched the latest price cuts for its most popular vehicles in a broad bid to boost sales.
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Both models represented about 4% of Tesla's global deliveries in 2022, while Tesla's Model 3 sedan and Model Y crossover made up the rest of the company's deliveries due to them being the company's cheaper models. These two electric vehicles are still available for the $7,500 federal tax incentive in the US for the rest of March.
Interestingly, Tesla will soon produce a new version of the Model 3 codenamed "Highland" within 2023 and a change to the Model Y codenamed "Juniper," a project the company will work on next year.
Why Did Tesla's Stock Fell?
Tesla's drive to boost sales may be due to the company's shares falling more than 5% in after-hours trade following the company's investor day from its Texas headquarters, per an earlier Reuters report. The drop happened despite positive analyst reaction to Musk's presentation on investor day and Tesla's overall outlook, per CNBC.
Barron's mentioned in its report that many of Tesla's executives presented details about Tesla's software, supply chain, and manufacturing, along with its plans to scale into a company that can make up to 20 million cars a year in the future.
While many analysts believe that the presentation reinforced their positive view on Tesla's performance, some, like Mark Delaney, cautioned that the obscurity stemming from the company's comment that they're working as fast as it can and it could be in the next two years is likely viewed as a disappointment to some.
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