Tesla is offering a bit more affordability to American electric vehicle (EV) shoppers. The company recently announced price cuts of $2,000 for three of its most popular models: the Model Y, Model X, and Model S.
This move comes amidst a backdrop of slowing sales for Tesla. The company reported its first quarterly delivery decline in nearly four years earlier this year, attributing it to rising competition in the EV market and a previous price increase for the Model Y.
The adjusted prices make the base Model Y more accessible at $42,990, while the Long Range and Performance trims come in at $47,990 and $51,490 respectively. The Model S starts at $72,990 for the base variant and $87,990 for the Plaid variant. The Model X also sees a $2,000 reduction, with a starting price of $77,990 and $92,900 for the Plaid trim.
This is not the first time Tesla has adjusted pricing in recent months. In March, they offered a temporary $1,000 discount on the Model Y. However, that increase followed a period of significant price hikes for Tesla vehicles in 2023.
Analysts believe these latest price cuts are an attempt to reignite customer interest as competition heats up. Legacy automakers like Ford and General Motors are now offering their own compelling EV options, putting pressure on Tesla’s market share.
It remains to be seen if the price adjustments will be enough to move the needle for Tesla. The company is facing additional challenges, including recent layoffs and the cancellation of its planned $25,000 electric car. However, one thing is certain: the EV landscape is becoming increasingly competitive, and Tesla is responding with price cuts in an effort to stay ahead.