Tesla has reduced the prices of Tesla Model X and S cars in the U.S. just days after Tesla’s Investor Day.
According to Tesla’s website, the Model S and X have dropped in price again. Tesla has reduced the price of the Tesla Model S all-wheel drive (AWD) from $94,990 to $89,990 (-5.2%), while the Plaid variant dropped from $114,990 to $109,990 (-4.2%).
The Model X AWD is now available for $99,990, down 9.1% from $109,990. The Tesla Model X Plaid fell in price from $119,990 to $109,990 (-8.3%).
During the Tesla Investor Day event, Elon Musk said that people want to own a Tesla, but the price is still high:
“The desire for people to own a Tesla is extremely high. The limiting factor is their ability to pay for a Tesla.”
–Elon Musk
What does it mean?
In recent months, Tesla has been reducing the prices of their cars in both the U.S. and Europe. By reducing the price, the company proves that it dominates the market.
For Tesla, it is a priority to make cars more affordable to people so that everyone can switch to electric vehicles. At Tesla’s Investor Day, the company said they would cut prices of the next-generation car in half, so perhaps people greatly underestimate Tesla and the company’s capabilities to scale and mass produce an affordable electric car.
“Tesla’s long-term competitive advantage will be manufacturing.”
–Elon Musk
Production efficiency could play a crucial role for Tesla. Elon Musk has big plans for Tesla, so the transition to electric cars could happen sooner than we expect.