Tesla reduces prices of Model S, Model X, and Model Y by $2,000

Tesla Cut Model S, Model X And Model Y Prices By $2,000

In early 2024, Tesla has decided to lower the prices of three of its Electric cars—Model S, Model X, and Model Y—by $2,000 in the U.S. This decision follows a challenging first quarter for Tesla, where EV production and deliveries decreased compared to the previous year, resulting in an excess of unsold cars.

The Tesla Model S now starts at $72,990 with additional fees totaling $74,630, marking a 2.7% reduction. The Tesla Model X has also seen a $2,000 price cut, leading to a 2.5% decrease in the base price, which starts at $77,990. The most significant change is with the Tesla Model Y, which now starts at an MSRP of $42,990, a nearly 4.7% decrease.

The Tesla Model 3 prices remain unchanged, while the all-new Tesla Cybertruck remains unaffected by the price adjustments. Tesla has also added a Destination fee of $1,390 and an Order Fee of $250 to all its models.

These price reductions aim to attract more customers and boost sales, as Tesla’s initial Q2 order inflow and sales may not meet expectations. The lowered prices may put additional pressure on other EV manufacturers in the market.