Tesla Reduces Prices of Model S and X by 20 Percent

Tesla has announced yet another price reduction for its Model S and X electric vehicles, in a bid to attract more customers who may be hesitant to embrace electric vehicles. The price cuts, ranging from 15 to 19 percent, are applicable to various models and trims and are not limited to American consumers alone. Similar discounts have been observed worldwide, as reported by EV experts Electrek.

Starting today, you can pick up a Model S for a base price of $74,990, down $3,500 from the previous base price. The Model X now starts at $79,990, an $8,500 discount. All colors are now included in the base price, so you don’t have to pony up for an aesthetic flourish. You can choose between white, black, grey, blue or red.

However, this is a good and bad news situation, as Tesla has suddenly discontinued the Standard Range version of both vehicles, which had a smaller battery. This isn’t such a big deal, however, as the new reduced prices for the Model X and S actually make these cars cheaper than the Standard Range vehicles.

There is one more money saving item. The Tesla Model X is now eligible for a tax credit under the Inflation Reduction Act. The eligibility threshold is $55,000 for cars and $80,000 for trucks and SUVs. In other words, the Model S is still too expensive, but the Model X squeaks in slightly below the cost threshold for SUVs and trucks. That means you can actually get a base Model X for less than a Model S as long as you make less than $150,000 to $300,000 a year, depending on whether you’re single or married.

As stated earlier, the price reductions also apply across Europe and China with corresponding reductions when local currencies are taken into account. While the lower prices are obviously a great thing for potential consumers, some current Tesla owners have expressed dismay at the accompanying drop in resale prices. Earlier this year, protesters in China demanded compensation for price cuts, but Tesla said no.