- Tesla has cut prices on its Model 3, Model X, and Model S electric vehicles.
- The Model 3's price is down by $2000, bringing it to less than $40K, and the Model X and S both see price cuts of $5000.
- Tesla outperformed competitors in the first quarter of 2020, but the outlook for electric-vehicle sales in general through the rest of the year isn't good.
UPDATE 10/13/2020: Tesla has cut the price of the Model S even further, reducing the price of the Long Range Plus and the Performance by $3000. The Long Range Plus now starts at $73,190, and the Performance starts at $93,190. The price cuts come as Lucid, an EV startup, is slated to release the base pricing for the Air tomorrow.
It wasn’t too long ago that Tesla still enjoyed federal tax incentives and a healthy economy to keep sales growing, but now that both of those factors are gone, the automaker is turning to price reductions to keep interest in their electric vehicles from dipping. Across its vehicle lineup, prices have been cut, including on the Model 3, Model X, and Model S.
The cheapest and most popular vehicle in the lineup, the Model 3, sees a $2000 price reduction and now starts at $39,190, making it more competitive in the entry-level electric-vehicle segment. This is down from $41,190.
The biggest and most expensive vehicle in the lineup, the Model X, sees its price fall $5000 to $81,190, down from $86,190. Tesla’s luxury sedan, the Model S, also saw a price drop of $5000 and now starts at $76,190, down from $81,190. The price on the Model Y has stayed the same.
All of the updated prices are already on the Tesla website.
Tesla was one of the few automakers to see sales increases in the first quarter of this year, as well as a profit, while the coronavirus pandemic shrunk demand across the world. Nonetheless, earlier this month, Bloomberg New Energy Finance (BNEF) projected that electric vehicle sales would fall 18 percent globally in 2020.