- Price drops on Model S, X, and 3
- Cuts range from $2,000 to $5,000
- No more unlimited charging for Model S, X
- Least expensive Tesla Model 3 starts at $37,990
Tesla has cut prices on all its products as it restarts production in a bid to make up ground lost to the Coronavirus shutdown. The sticker prices of its range of electric vehicles are $2,000 lower on the entry-level Model 3 and $5,000 on the larger Model S and X versions.
With its $2,000 price cut on the Model 3, the least expensive Tesla now costs $37,990. That would bring the price the closest ever to the promised $30,000 base price if the company was still eligible for the federal $7,500 electric vehicle tax credit. However, since Tesla has sold more than 200,000 vehicles, the tax credit, which began phasing out last year, is no longer applicable. However, all Teslas are still eligible for state and local incentives.
Price cuts on Model S, X
The Model S now starts at $74,990 and the Model X at $79,990. Both are Long Range Plus versions. The Model S boasts a range of 391 miles between charges, while the Model X can go 351 miles, according to EPA estimates.
In addition to dropping some prices, Tesla also is no longer offering unlimited free supercharging to new customers of the Model S and X. This perk is not available to Model 3 buyers, nor does it apply to the new Model Y crossover SUV.
Model Y pricing unchanged
The price cuts don’t apply to the Model Y, which is just coming into the market. The base model of this Model 3-based crossover starts at $52,990, while the performance version costs $60,990. Like the other Tesla models, this latest entry is not eligible for any federal tax credits.
While the lower prices are being instituted as Tesla gears up production, this strategic move not only reflects a need for the pioneer EV maker to move product but also reflects growing competitive pressures. These include new competition from established makes, the hit to affordability by the end to federal tax credits, and lower gas prices. One of the key marketing elements Tesla has employed is showing a vehicle price that is $4,000 to $6,000 lower than its actual MSRP that incorporates “potential savings”, a big component of which is fuel cost.
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