In a move that takes us by surprise, Tesla Inc has raised the prices of Model S and Model X days after announcing its sixth recent price cut
As revealed on its official website, Tesla Inc increased the prices for the Model S and Model X electric cars on Thursday. While price hikes aren’t uncommon, what’s surprising is that the latest correction comes merely days after the carmaker announced its sixth consecutive price cut. Still, though, both the premium electric vehicles are around 20 percent more affordable than what they were at the start of 2023.
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Tesla Model S and Model X Now Priced at $107,490 each
The price rise came into effect soon after the California-based carmaker’s shares slumped by almost 10 percent. It’s noteworthy that despite the consecutive price cuts, Tesla has once again missed the deliveries target. Thanks to the latest price correction, the Model S Plaid and Model X Plaid, the high-performance versions, are now priced at $107,490 apiece. This corresponds to a $2,500 increment from the earlier price tag of $104,990. Meanwhile, the Model X retails for $97,490, almost 2.9% more than before. The Model S now costs almost 2.9% higher at $87,490. The only saving grace here is that 3-year complimentary access to the Supercharger network is currently on offer to those who purchase by June 30.
Notably, the Tesla Model S and Model X received a $5,000 price cut days after the carmaker reported a 38% slump (Q1, 2023) in the deliveries of both models. The renowned carmaker has been announcing frequent price cuts in several global markets. The USA alone has witnessed as many as 6 price cuts in quick succession. The reduced prices come at the back of the company’s effort to meet its sales targets.
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Ford’s Jim Farley Reacts to Latest Tesla Price Hike
CEO Elon Musk has repeatedly asserted his willingness to continue with the price war he waged late last year, hinting at more price cuts. This event reiterates the company’s strategy of prioritizing sales growth over profits during the ongoing economic slump. The multiple price cuts have indeed pushed other electric car manufacturers to rethink their pricing strategies. Jim Farley, Chief Executive at Ford Motor Co., feels that Tesla’s quickness to fine-tune pricing and its “reductive” focus on maximizing profits gives it a competitive edge. He feels other carmakers will have to follow a similar approach. Speaking at a charity event, Farley said: “Honestly, anyone surprised at this, I don’t understand. You have to be able to respond quickly. That agility he’s building is super important for everyone.”
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