Tesla Cuts Prices Of The Model S And Model X

Tesla has cut U.S. prices of both the Model S and Model X, CNBC reports.

The electric car manufacturer reduced the starting price of the Model S by a cool $3000 and the Model X by $2000. This means the Model S now starts at $71,250 while the Model X can be purchased from $71,950.

In a statement, Tesla says that it periodically adjusts prices and available options for its vehicles just like many other car manufacturers but the company didn’t provide any specifics as to whether slowing sales of these two models influenced its move to lower prices.

Also Read: Tesla Cuts Options On Model S And Model X, While Also Increasing Prices On 75D Variants

Adjustments to the Model S and Model X pricing comes at a time when Tesla is facing renewed skepticism from investors concerned about the company’s inability to turn a consistent profit and keep the car manufacturer growing. Tesla stock has fallen from $262 per share on April 22 down to $205 as of May 20. This is also down significantly from the $376 which Tesla shares reached in December 2018 and well down from the record-high of $383 reached in the middle of 2017.

“The business fundamentals of Tesla always have been shaky, but the stock price has been buoyed by the story that this is a company that was going to do huge things,” Navigant Research analyst Sam Abuelsamid said. “What we’ve seen in the last month or so is people are starting to recognize maybe that wasn’t really true.”

Tesla is delivering more cars than it ever has before but is still burning through cash, prompting chief executive Elon Musk to announce comprehensive layoffs and a number of other initiatives designed to reduce costs. The car manufacturer lost an extraordinary $702.1 million in the first quarter.

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  • Mr. EP9

    “In a statement, Tesla says that it periodically adjusts prices and available options for its vehicles just like many other car manufacturers but the company didn’t provide any specifics as to whether slowing sales of these two models influenced its move to lower prices.”

    I personally think it’s to boost sales. It would make sense not only to generate more revenue but to offset some of the lost sales they’d naturally experience with the reduction in tax credits.

  • TheBelltower

    The S is a seven year old model, the X is over three years old. The platform has existed without a major overhaul other than the front end design. After so many years, a small price reduction like this only shows how substantial these cars are.

  • Daniela Wolf

    won’t stop the crumbling sales of Model X and S….

    • Six_Tymes

      is that fact ?

  • Astonman

    When Tesla’s price drops to “normal” level, I see maybe Volkswagon or Toyota would buy it. Outside chance would be Amazon or Google.

    • Daniela Wolf

      VW won’t buy a sick company.

      • Astonman

        Sick company that has a lot of brand wealth and technical knowledge – that is a lot value

  • Maisch

    Not very surprising that the stock level is going towards something reasonable. Hey, this is automotive business, margins are in general small and profits arent that big in relation to invested money. Why would that suddenly change ?

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