After considerable price deductions in May this year, Tesla has once again announced price cuts of up to $3000 for Model S, $2000 for Model 3, bringing it to less than $39,190, and $5000 for Model X. The Long Range Plus now starts at $73,190, and the Performance starts at $93,190.
Not clear as to why the price cuts had been made for the second time this year, Tesla’s newest price cuts have caused a ripple effect, cutting down the price tag for the three popular cars in other countries, such as Canada, as well.
A dip in their earnings being a highly unlikely cause, Tesla was one of the few automakers to see sales increases in the first quarter of this year, as well as a profit, while the coronavirus pandemic shrunk demand across the world. In April this year, Tesla remained unfazed by the pandemic, posting a profit of $16 million for the first quarter of 2020 even with complications surrounding the coronavirus pandemic.
The new pricing update follows price cuts across Tesla’s lineup earlier in May, wherein the electronic automaker had already reduced the price of the Model S Long Range Plus by $5,000 for it to start at $74,990.
In a new price update announced yesterday, the Model 3, which is deemed as one of the cheapest and most popular vehicles in the lineup, will see a $2000 price reduction starting at $39,190, which is already showcased on the website. The new price has come down from $41,190, making it one of the most well-priced and pocket-friendly entry-level electric-vehicle in the market.
This being said, Tesla’s biggest and most expensive vehicle in the lineup, the Model X, has seen a dip in its price with $5000 deducted from the original cost, bringing it down to $81,190 from the earlier tag of $86,190.
Tesla’s luxury sedan, the Model S, also saw a straight slash of $5000 and it now starts at $76,190, down from $81,190.
Whilst the three models have seen these significant cuts, the price tag on the Model Y remains the same.