Mar 6, 2023 - Economy

Tesla drops Model S, X prices again in U.S.

Tesla vehicle price changes
Data: Bloomberg; Chart: Tory Lysik/Axios Visuals

Tesla cut prices again on its Model S and X vehicles in the U.S. following the company’s investor day last week.

Why it matters: The EV maker needs to spark sales amid greater competition and investor concerns about demand.

By the numbers: The newest cuts range from 4% to 9% and drop the starting prices for the Model S and X, its higher-end models, to $89,990 and $99,990, respectively.

  • Those are down from $94,990 and $109,990 as of mid-January.

What they’re saying: "The desire for people to own a Tesla is extremely high. The limiting factor is their ability to pay for a Tesla," CEO Elon Musk said last week.

  • “We found that even small changes in the price have a big effect on demand, very big.”

Zoom out: Tesla has a much more fluid pricing strategy than other carmakers.

  • At any given time, the price of its cheapest vehicle, for example, is on average roughly $300 less than the average price paid for a new car in the U.S., according to a Bloomberg analysis.

What to watch: Margins, which are already squeezed.

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