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Tesla Cuts Prices of Model S and Model X Again

$10,000 in the snap of a finger

2021 Tesla Model S Plaid on the track
  • Tesla has dropped the prices of its most luxe cars.
  • The Model S and Model X are now significantly less expensive.
  • Plaid versions of the Model X and S are now the same price.

After a massive price slash in the middle of January that cut prices across the lineup, the Model S and Model X (Tesla’s priciest offerings) have received yet another discount. The Model S gets a $5,000 cut, and the Model X is now $10,000 cheaper across the board. This likely comes in response to reports of Tesla inventory that has been piling up, causing the automaker to miss its 2022 delivery targets.

While neither vehicle qualifies for the Inflation Reduction Act’s $7,500 tax credit (which sets a maximum price for an EV to receive the credit at $80,000), this most recent price cut might help spur demand for the aging SUV and sedan.

The Model X with all-wheel drive (AWD) now starts at $99,990, but after the destination and order fees are applied, the Model X starts at $101,630. The Model X Plaid, which used to start at nearly $140,000 before the previous cuts, is now $111,630. The Model S AWD now starts at $91,630, a $5,000 reduction since January. The Model S Plaid starts at $111,630, and at that price it becomes a very enticing proposition.

2023 Tesla Model X exterior detail

According to Reuters, prices for the Model S and Model X have fallen 4% and 9%, respectively, since the start of the year in the United States. The drop in prices is a response to waning demand in the face of competition from legacy luxury automakers like Mercedes-Benz and BMW, the rise of the Lucid Air, and a slowing economy. In other countries, Tesla prices have fallen by as much as 18%.

Tesla CEO Elon Musk said that Tesla would deliver 2 million vehicles in 2023, and the major price cuts are likely to help reach that goal. Tesla missed its target to grow deliveries by 50% in 2022 as a result of both logistical issues and a simple lack of demand. The cuts should help Tesla move some of its unshifted inventory.

Edmunds says

The base Model S (with the no-cost steering wheel) might just be one of the bargains of the moment given just how little it costs compared to its rivals.