Tesla has lowered the prices of its most expensive premium vehicles in the U.S. market, the Model X and Model S. This is the second price reduction measure this year.
According to CNN and others on the 6th (local time), Tesla reduced the base price of the Model X from $109,990 to $99,990, a decrease of about 9%. The high-performance Model X Plaid is sold at $109,990, down 8.3% from the previous $119,990. The base Model S price was lowered from $94,990 to $89,990, and the Model S Plaid from $114,990 to $109,990.
This is the second time Tesla has cut prices on its popular vehicles this year. Earlier in January, Tesla reduced prices of the Model Y and Model 3 sedan by up to 20%. At that time, Tesla's move sparked speculation that a price-cutting chicken game would unfold in the automotive industry in 2023.
Barron's commented, "The Model S and X are high-priced vehicles," and added, "This price cut aims to boost sales in the last month of the first quarter." Last year, Tesla delivered 66,705 Model S and Model X vehicles to consumers, accounting for about 5% of total deliveries.
Notably, this price reduction decision came shortly after Tesla CEO Elon Musk recently evaluated that the price cuts had the effect of stimulating electric vehicle demand, drawing even more attention. At the 'Investor Day' event held on June 1 in Austin, Texas, Musk said, "People have a very strong desire to own a Tesla," but "the problem is affordability." He also emphasized his plan to continue cost reductions and price cuts, stating, "I found that even small price changes have a big impact on demand."
Wall Street is also pouring out assessments that Tesla's consecutive price cuts will help boost sales. Jefferies raised Tesla's target price from $180 to $230 per share.
Meanwhile, Tesla's stock price showed a decline of around 1% in the New York stock market this morning.
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