In a surprising bit of good news, Tesla has officially dropped the price of most of their range in North America and Asia. We have to speculate that the cause of the price cut was the lower demand for cars seen around the world due to lockdown, but nonetheless, some buyers will see a savings of up to %6.
The premium Model S and X both saw the highest cuts to all their trim levels, a $5,000 reduction. Now the entry-level Long Range Plus variants of both vehicles will go for $74,990 and $79,990 respectively. The Performance models of each also saw the same $5,000 cut.
The more affordable Model 3 also got a price cut, although it was proportionate to the starting price of the sedan. After slashing off $2,000, Tesla now sells the entry-level Standard Range Plus for $37,990 before incentives.
As far as the Chinese market, Tesla has said that it plans to reduce the price of both the X and S, which are made in the US. On the other hand, the Model 3, which it produces domestically for the Chinese market, will not be receiving a reduction.
I know what you all are thinking, “what about the Model Y?” Well, unfortunately the Model Y will not be receiving any such price change, at least not yet. The crossover, which is Tesla’s newest product, hasn’t exactly been around for long, and already hits above its weight class in Tesla’s lineup, as far as value is concerned.
Going back to the cause, it would seem natural for the crisis to cause these cuts. However, it’s not that large of a stretch to consider advancements in battery cost towards an economic advantage, as a possible catalyst.
Tesla has been striving towards price-parity with combustion cars for some time, and this could be a deliberate move towards that goal. After all, they’ve recently filed for approval to use a new kind of battery in China, and their Battery Investors Day rests squarely on the horizon.