Tesla cuts prices on top end models

Just days after Tesla executives announced plans to improve affordability of their electric cars, Tesla has marked down prices on two of its top end models.

Reuters reported that the most recent price cuts are Tesla’s fifth time adjusting pricing since the start of the year, with the price drops ranging from 4 percent on the performance version of the Model S vehicle to 9 percent on the Model X vehicle.

Reuters reported that Tesla dropped prices of both versions of the Model S by $5,000. According to Tesla’s website, the basic version of the Model S now costs $89,990 while the performance model, the Model S Plaid, costs $109,990.

Similarly, both the performance and basic versions of the Model X prices were cut by $10,000, Reuters reported. The performance model costs $109,990 and the basic model costs $99,990, according to the website.

Tesla’s current inventory on the website also shows discounted prices on new Model S and Model X cars.

Tesla executives announced last week at an investor day presentation that they plan to cut costs of their next-generation cars in half by improving manufacturing and using smaller factories. This cost-cutting measures could bring the price of a Tesla vehicle down to $25,000.

“As we improve affordability, the number of customers who have access to our products increases,” Tesla Chief Financial Officer Zachary Kirkhorn said during the presentation last week.

Tesla did not deliver as many vehicles as they intended to in 2022, producing 1.31 million vehicles last year, short of the 1.4 million deliveries it needed to achieve its goal of a 50 percent increase, according to a Wall Street Journal report.

Tesla announced last week that it will be recalling 3,470 2022 and 2023 Model Y electric vehicles due to discovering loose bolts in the cars. Tesla also recalled more than 362,000 vehicles last month, saying that an experimental software could cause crashes.