Tesla Inc. cut the prices of its Model S and Model X vehicles in the U.S. late Sunday, in a bid to boost sales in the final month of the first quarter.
According to Tesla’s website, prices for the Model S sedan were cut by $5,000, with the basic version now costing $89,990, down from $94,990 previously, and the high-performance Plaid version starting at $109,990, down from $114,990. Prices for the Model X SUV were slashed by $10,000, with the basic version now costing $99,990, down from $109,990, and the Plaid version at $109,990, down from $119,990.
In January, Tesla, cut prices on its Model 3 and Model Y vehicles. While that raised some concerns on Wall Street of sagging demand and lower margins, Piper Sandler analysts said the move could succeed in boosting sales and increasing its market share.
Last week, Tesla held its annual investor day and executives said the electric-vehicle maker was determined to cut manufacturing costs and prices for consumers. “The desire for people to own a Tesla is extremely high. The limiting factor is their ability to pay for a Tesla,” Chief Executive Elon Musk said, according to a FactSet transcript.
Tesla shares TSLA, +3.61% have surged 60% year to date, but are still down about 30% over the past 12 months, compared to the S&P 500’s SPX, +1.61% 5% gain in 2023 and 6.5% decline over the past year.
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