Over the weekend, Tesla once again lowered the prices of its Model S sedan and Model X SUV. The company had already cut $10,000 off the price of the Model S in January, as part of the radical price cuts across the entire lineup; now, it has slashed another $5,000. A larger cut has been applied to Model X prices; they are now $10,000 lower than last week.
Starting on Monday, March 6, the Model S begins at $91,380. That is for the dual-motor version that offers an EPA range of 405 miles and claims a 0 to 60 mph time of 3.1 seconds. The Dual Motor version of the Model X starts at $101,380 in the five-passenger format, while six- and seven-passenger versions are available at an additional cost.
These prices, while much lower than last year, are still much higher than at the end of 2020, when the company lowered Model S prices in an apparent effort to match the Lucid Air. Since then, both models have raised prices; the Air starts at $94,400 in its dual-motor Pure version, with a range of 410 miles.
Also noteworthy: the high-performance Tesla Model S Plaid and Model X Plaid now start at the same price: $111,380. Tesla claims that the Model S Plaid, with a range rating of 396 miles, remains the fastest-accelerating car in production today (0 to 60 mph time of 1.99 seconds and quarter-mile time of 9.23 seconds), while the Model X Plaid achieves a range rating of 333 miles and is claimed to be the fastest-accelerating SUV in production today. Both models feature a 1,020-horsepower tri-motor propulsion system, along with upgraded brake pads and a carbon-fiber spoiler.
Tesla continues to offer its $15,000 Full Self-Driving package, now labeled as Full Self-Driving Capability, on both models. So far, this included the Full Self-Driving Beta system that allows Autosteer on city streets, but last month the company issued a recall of that system after federal regulators said it poses “an unreasonable risk to vehicle safety.”
The move could cause more disruption in the used Tesla market or help make used Teslas more affordable, depending on one’s perspective. Amid signs that the Tesla demand bubble had burst, used Tesla prices were already falling in the second half of 2022 before the January price cuts, and before that, Tesla offered a discount on the Model 3 and Model Y of up to $7,500.
There is no doubt that the price cut reflects how competitive and crowded the premium EV field has become, with entries from Rivian, Lucid, Mercedes-Benz, BMW, Cadillac, and others gaining market share in the electric vehicle market.
