Mar 6, 2023 - Economy & Business
Tesla drops Model S, X prices again in U.S.
- Hope King, author of Axios Closer
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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