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Tesla Cuts Prices Again to Dominate Electric Car Market

Tesla Inc. has slashed the price tags of its two most expensive electric vehicles (EVs) in an apparent effort to assert dominance in the EV market. This development comes days after CEO Elon Musk stated that the recent price cuts on other models had increased demand.

The company has cut the prices of Model S Performance by 4% and Model X Performance by 9%. According to Musk, Tesla is focusing on lowering prices to drive demand, and global discounts introduced in January helped boost orders.

“The desire for people to own a Tesla is extremely high. The limiting factor is their ability to pay for a Tesla.” Musk told investors last week.

Tesla began a price war in January by slashing car prices by up to 20% in all markets. In 2022, 4% of Tesla’s global deliveries were Model S and Model X AWD, and Plaid models. The rest came from the cheaper Model 3 sedan and Model Y crossover variants.

Musk seeks to boost sales across the board by reducing the prices of top variants as well. The basic Model S price dropped 5% to $89,990, while the Performance variant price dropped 4% to $109,990.

The EV maker’s website showed $10,000 cuts to Model X performance and basic models. The basic, AWD Model X was reduced by 9% to $99,990, while the Performance version was reduced by 8% to $109,990.

According to Reuters, Tesla will release a “Highland” Model 3 later this year and a “Juniper” Model Y next year to further diversify its lineup and increase its demand.