Tesla CEO Elon Musk throws down gauntlet, slashing the price of the Model S
The announcement comes after competitor Lucid Motors said their luxury electric sedan, the Lucid Air, would start at $77,400, or $69,900 with a $7,500 federal tax credit.
Tesla CEO Elon Musk is throwing down the gauntlet, announcing that the price of the company's flagship sedan, the Model S, will be reduced for the second time this week beginning Wednesday evening.
"The gauntlet has been thrown down! The prophecy will be fulfilled," Musk tweeted Wednesday. "Model S price changes to $69,420 tonight!"
The announcement comes after one of the electric vehiclemaker's competitors, Lucid Motors, said their luxury electric sedan, the Lucid Air, would start at $77,400. However, Lucid noted customers may also be eligible for a federal tax credit of $7,500, which would effectively cut the price down to $69,900.
According to the Lucid Motors website, the Lucid Air features 480 horsepower and a projected range of 406 miles on a single charge--though the EPA has yet to test it.
TESLA CUTS MODEL S PRICE BY $3,000 AMID SALES SLIDE
Musk's tweet signals the second cut this week after the company cut the Model S price by $3,000 overnight.
The $3,000 price reduction brought the Model S Long Range Plus down to a starting price of $71,990 in the U.S. and a $91,900 starting price for the Model S Performance version. However, the Model S Plaid was not changed from its starting price of $139,990.
The new price tag of $69,420 means the second cut would take another $2,570 off the Model S price tag this week for a total reduction of $5,570.
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The new Model S price comes as Tesla reported 15,200 combined global deliveries for the Model S and Model X SUV in the third quarter, which was down nearly half from the 27,660 recorded in 2018. Overall Tesla deliveries set a quarterly record of 139,300 on the strength of the lower-priced Model 3 and Model Y.
Musk also teased on Wednesday that production for the seven-seater Model Y will begin next month, with initial deliveries expected to begin in early December.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 357.09 | +11.93 | +3.46% |
Tesla stock closed at $461.30 per share Wednesday, up more than 3 percent.
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Fox News' Gary Gastelu contributed to this report.