Tesla has lowered the prices of its high-end Model S and Model X electric cars by $5,000 (5.2 percent) and $10,000 (9.1 percent), respectively, according to changes on its website seen by TechCrunch.
It’s the second time this year the company has slashed prices, so the Model X is down $21,000 from $120,990 at the start of the year to just $99,990 currently. Meanwhile, since Jan. 1, the Model S is down from $104,990 to $89,990 — a hefty discount of $15,000.
Neither car is eligible for federal tax credits that expire later this month, as they only apply to SUVs priced under $80,000 and cars under $55,000. Still, they’re likely to push many witch sitters over the edge. That echoes what CEO Elon Musk said at Tesla Investor’s Day, that “people’s desire to own a Tesla is extremely high… [but] the limiting factor is their ability to pay for a Tesla.”
Most Model 3 and Y vehicles are eligible for the rebates, thanks to Tesla’s January price cuts on those EVs. (As a reminder, it’s a “non-refundable” tax credit, so you’ll only benefit if you have a federal tax liability of at least $7,500.) After mid-March, however, the rules will change, and many currently eligible EVs may become unsuitable become.
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