EV price war continues: Tesla drops US pricing for the S, X, and Y

  • Tesla has once again slashed the prices of much of its US range, with the Model S, X, and Y each receiving a $2,000 price drop.
  • The drops now bring the entry-level Model Y down to a competitive $42,990, closer matching prices such as the $39,995 2024 Ford Mustang Mach-E, and $41,160 Volkswagen ID.4.
  • It comes days after its Q1 report indicated a decline in vehicles delivered, indicating that this price drop is a strategy to shift more Tesla EVs.

Cheaper Tesla models for America

It’s not the first time Tesla has dropped the prices of its EVs, with cuts across multiple markets occuring last summer, and a more recent US price drop last October. The news also comes days after the company announced it would cut its global workforce by 10%, with Musk calling the layoffs necessary for company growth. This lower price drop is likely part of that strategy, as the brand fends off an increasingly fierce EV competition. While lower prices will entice new owners, it comes alongside one small disadvantage to current Tesla owners, with the company dropping its referral scheme at the end of April.

The drop has also brought down the price of the base model Model S saloon and Model X SUV to $72,990 and $77,990 respectively. Whether this price reduction translates into increased deliveries in future quarterly reports will be one to watch.

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