Tesla Slashes Prices Amid Stock Woes
Sobia Sultan
Amid a downturn in its shares, Tesla has reduced the prices of the Model S, Model X, and Model Y.
Tesla’s stock has plummeted over 40% year-to-date, hitting a new low of $147 per share after a 2% drop on April 20 due to the recall of all Cybertrucks.
This marks six consecutive days of losses exceeding 1%, with shares now down 65% from their peak in November 2021.
Despite being at its cheapest since January, Tesla faces negative catalysts such as disappointing earnings, declining vehicle deliveries, and anticipated drops in revenue and profit for 2024.
Its high valuation reflects its growth stock status, but uncertainties in its product roadmap and doubts about profitability may persist until 2026.
With the fresh price cuts, Tesla cars appear to be becoming more affordable for consumers.
The Tesla Model 3, launched in the United States last January, was not affected by the recent round of price reductions.
Model S Sedan Price Revisions
| Trim Level | New Price | Previous Price |
|---|---|---|
| Dual Motor All Wheel Drive (AWD) | $72,990 | $74,990 |
| Model S Plaid | $87,990 | $89,990 |
As noted by members of the Tesla community, the Model S sedan has received a $2,000 price cut.
With the fresh price revision, the flagship all-electric premium sedan is now available at $72,990 for the Dual Motor All Wheel Drive (AWD) version.
The cost of the top-tier Model S Plaid stands at $87,990, down from $89,990.
Model X Price Cuts
| Trim Level | New Price | Previous Price |
|---|---|---|
| Long Range AWD | $77,990 | $79,990 |
| Model X Plaid | $92,990 | $94,990 |
The company has also slashed the price of Tesla’s other flagship vehicle, the Model X SUV, by $2,000.
With the fresh price cut, the Model X Long Range AWD will now be sold at $77,990, while the Model X Plaid will be available at $92,990, down from $94,990.
The Model X Dual Motor AWD also qualifies for federal tax credits, allowing customers to purchase the vehicle for $70,490 after incentives.
Model Y Price Reduction
| Trim Level | New Price | Previous Price |
|---|---|---|
| Rear Wheel Drive (RWD) | $42,990 | $44,990 |
| Long Range Dual Motor AWD | $47,990 | $49,990 |
| Performance | $51,490 | $53,490 |
The company has also reduced the price of the Tesla Model Y crossover by $2,000.
With the price cut, the Model Y Rear Wheel Drive (RWD) will now be sold at $42,990, the Model Y Long Range Dual Motor AWD at $47,990, and the Model Y Performance at $51,490.Tesla to Recall 2.2m Vehicles over Warning Lights Concerns
Before the price cut, the Model Y RWD was being sold at $44,990, the Model Y Long Range Dual Motor AWD at $49,990, and the Model Y Performance at $53,490.
Like the Model X Dual Motor AWD, the Tesla Model Y also qualifies for the IRS’s $7,500 incentive.
Therefore, the cost of the Model Y RWD drops to $35,490 after the federal tax credit, the cost of the Model Y Long Range Dual Motor AWD comes down to $40,490 before options, and the cost of the Model Y Performance drops to $43,990 before options after the $7,500 federal tax credit.
