- Tesla has announced a reduction in prices of its vehicles including the Model 3, Model X, and the Model S.
- However, the Model Y which only recently started deliveries is not seeing a price reduction as of yet.
- Thanks to this new price reduction, customers can save up to $5,000 on top-end models of the Model X and the Model S.
In view of reducing demand, tesla has decided to reduce the prices across its lineup of vehicles. While bigger EVs are getting a heftier price cut of up to $5,000, the entry-level Model 3 has seen a reduction by $2,000. In addition to this new price reduction, Tesla recently announced that its Full-Self-Driving option in its vehicles will cost $1,000 more starting in July 2020.
Here are the new prices for Tesla’s car lineup:
Model 3 Standard Range Plus – $37,990
Model 3 Long Range – $46,990
Model 3 Performance – $54,990
Model S Long Range Plus – $74,990
Model S Performance – $94,990
Model X Long Range Plus – $79,990
Model X Performance – $99,990
The state and federal rebates remain applicable even at the lower costs, with the potential to get up to $5,000 back depending on the model you pick.
Expectedly, the model y is not seeing a price reduction as the mid-size SUV only recently started delivering to the customers. It is believed that Tesla has a long backlog of orders for the Model Y as the company started taking orders last year, and waited until March this year to start deliveries.
Tesla’s production facility in Fremont was shut-down as California announced stay-at-home orders. However, Musk was at loggerheads with the local authorities over the reopening of the Fremont plant. Things eventually ended smoothly with Tesla reopening operations at the unit a few weeks ago. The company also decided to drop a lawsuit that was filed against Alameda County.
While the newly offered discounts are expected to hit Tesla’s earnings, it seems like the company is hoping to clear out its inventories as new stock arrives. While the margins are said to be low, Tesla is still expected to be making a profit with the EVs at these discounted prices.