Tesla Cuts Prices for its Model S and Model Y Cars

According to the website of Tesla Inc., the company has reduced the prices of its two most expensive electric vehicles in the United States. This comes just a few days after Chief Executive Elon Musk stated that recent price reductions on other models had stoked demand.

Musk has stated numerous times in recent months that Tesla would focus on bringing prices down to drive demand and that it had seen success in sparking orders with global discounts introduced in January. The price reductions, which are Tesla’s fifth adjustment since the beginning of the year, ranged from 4% on the performance version of the Model S to 9% on the more expensive Model X.

Elon Musk said that, people have a very strong desire to own a Tesla. Their ability to pay for a Tesla is the limiting factor, and when asked Tesla did not immediately respond.

In January, Tesla slashed the prices of its cars in all of its markets, offering discounts of up to 20%. This was seen by many analysts as the beginning of a price war by the leader in the electric vehicle market.

In 2022, approximately 4% of Tesla’s global deliveries were of the Model S and Model X, which are available in base all-wheel drive (AWD) and performance “Plaid” editions, respectively. The remainder was made up of its two less expensive models, the Model Y crossover and sedan.

On its website, Tesla claimed to have reduced the prices of its two Model S models by $5,000.