Tesla has dropped prices in the United States for its two most expensive vehicles, the Model X and the Model S, to encourage demand and boost competition in the region.
The new price of the base Model X, an all-terrain SUV, is $99,990, about 9% less than before. Meanwhile, the price of the Model S sedan now stands at $89,990, representing a 5% reduction.
In January, Tesla already reduced the prices of its vehicles in the United States and Canada by between 6 and 20% to encourage sales.
In 2022, Tesla produced a total of 1,369,611 vehicles and delivered 1,313,851, which means that 4% of the total production does not have a customer. However, the company’s Model X and Model S produced 71,177 units and delivered only 66,705 vehicles, which means 6.2% without a buyer.
The reduction in January caused other electric car manufacturers to lower their prices.
Ford will cut the price of the electric SUV between 1 and 9% of the Mustang Mach-E, depending on the version. The Mustang Mach-E was the third best-selling electric vehicle in the United States in 2022.
Following today’s price cut, Tesla shares traded lower in New York. Shortly before the market closed, shares had lost 1.6% and were trading at $194.64.
Tesla CEO Elon Musk said last week that prices are the only thing holding us back from selling more vehicles because the desire to own the company’s cars is so high.
“Even small price changes have a big effect on demand,” said the businessman after presenting the financial results for 2022.
Musk also stressed that one of Tesla’s key goals in the mid-term is to lower the costs and prices of its products.