Tesla cuts prices in the US again to spur demand
The Tesla Model S sedan and the Model X have had their starting price cut by $5,000 from last month's price
Tesla has once again cut prices in an effort to boost demand for its electric vehicles, according to Bloomberg.
The Model S sedan now starts at $84,990, a $5,000 cut from last month's price.
The Model X starts at $94,990, also a $5,000 drop.
The automaker delivered 422,875 vehicles globally in the first quarter. Shares have advanced over 50% this year, exceeding the S&P 500's 7% rise.
Tesla
TESLA SHARES SLIDE AFTER DELIVERIES DISAPPOINT
Elon Musk, CEO of Tesla Motors and the Model X car. ((AP Photo/Marcio Jose Sanchez, File) / AP Newsroom)
The S and X models made up just 10,695 of those deliveries.
Other Teslas, such as the Model 3 sedans and Model Y sports utility vehicles saw their prices trimmed by $1,000 and $2,000, respectively, bringing those starting prices to $41,990 and $49,900, according to its website.
Tesla did a round of price cuts in the U.S. in January, reducing prices by 20% as a way to likely allow some buyers to qualify for a $7,500 U.S. government tax credit.
A Tesla Model 3 sedans and Tesla Model X sport utility vehicle at a new Tesla showroom. (REUTERS/Yilei Sun / Reuters Photos)
TESLA SLASHES MODEL S AND X PRICES AGAIN BY UP TO $10,000
That reduction on the Model Y crossover brought the vehicle below a $55,000 cap, making it eligible for the tax incentive.
A 14% cut brought the price of a high-performance version of its Model 3 sedan to $53,990, also putting it under the cap.
A Tesla Model 3 is seen in a showroom in Los Angeles, California. (REUTERS/Lucy Nicholson / Reuters Photos)
CLICK HERE TO READ MORE ON FOX BUSINESS
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 357.09 | +11.93 | +3.46% |
Tesla CEO Elon Musk suggested at that time the higher interest-rate environment was hurting demand.
Tesla will report earnings on April 19.