Tesla slashes thousands of dollars from MSRP overnight
05-27-20, 03:07 PM
#1
Tesla slashes thousands of dollars from MSRP overnight
Tesla slashes thousands of dollars off the price of new electric cars
Tesla cut prices overnight on its three-strong line of electric vehicles by as much as 6% in North America. The biggest price reductions come on Tesla's older Model S and Model X, while the smaller and newer Model 3 sees smaller cuts. The automaker hasn't offered any reason for the discounts, but it's not a stretch to assume Tesla is looking to boost sales that went stagnant in the wake of the coronavirus pandemic and related shutdowns across much of the country.
Right now, Tesla website's shows the starting price for its Model S sedan is now $74,990, a $5,000 drop from what was displayed just yesterday. The Model X SUV now starts at at $79,990, $5,000 less than the $84,990 sticker from before. Upgraded Model S and X Performance variants saw matching $5,000 cuts.
The lowest-priced Model 3 sedan is $2,000 cheaper at $37,990. The Long Range starts at $46,990 and the Performance at $54,990.
Tesla also said its Supercharger quick-charging service will no longer be free to new customers of its Model S sedans and Model X sport utility vehicles (SUVs).
Auto retail sales in the United States likely halved in April from a year earlier, showed data from J.D. Power. However, sales in May are likely to improve due to pent-up demand and incentives offered by most carmakers, the analytics firm said.
Automakers including General Motors, Ford and Fiat Chrysler are offering 0% financing rates and deferred payment options for new purchases.
Factories in the United States started to reopen earlier this month with suppliers gearing up to support an auto industry employing nearly 1 million people.
Tesla was briefly forced to stop work at its Fremont, California, factory due to stay-at-home orders. It resumed production after resolving a dispute over safety measures with local authorities.
Tesla said it will also cut prices in China — as per usual after price adjustments in the United States — by around 4% for the Model X and Model S.
Tesla China, which is delivering Model 3 sedans from its Shanghai factory, in a Weibo post said it has also cut prices for the Model S and Model X cars it imports, but will keep prices of locally made Model 3 cars unchanged.
Right now, Tesla website's shows the starting price for its Model S sedan is now $74,990, a $5,000 drop from what was displayed just yesterday. The Model X SUV now starts at at $79,990, $5,000 less than the $84,990 sticker from before. Upgraded Model S and X Performance variants saw matching $5,000 cuts.
The lowest-priced Model 3 sedan is $2,000 cheaper at $37,990. The Long Range starts at $46,990 and the Performance at $54,990.
Tesla also said its Supercharger quick-charging service will no longer be free to new customers of its Model S sedans and Model X sport utility vehicles (SUVs).
Auto retail sales in the United States likely halved in April from a year earlier, showed data from J.D. Power. However, sales in May are likely to improve due to pent-up demand and incentives offered by most carmakers, the analytics firm said.
Automakers including General Motors, Ford and Fiat Chrysler are offering 0% financing rates and deferred payment options for new purchases.
Factories in the United States started to reopen earlier this month with suppliers gearing up to support an auto industry employing nearly 1 million people.
Tesla was briefly forced to stop work at its Fremont, California, factory due to stay-at-home orders. It resumed production after resolving a dispute over safety measures with local authorities.
Tesla said it will also cut prices in China — as per usual after price adjustments in the United States — by around 4% for the Model X and Model S.
Tesla China, which is delivering Model 3 sedans from its Shanghai factory, in a Weibo post said it has also cut prices for the Model S and Model X cars it imports, but will keep prices of locally made Model 3 cars unchanged.
05-28-20, 10:35 AM
#5
Pole Position
Wonder why they pictured a silver Model 3...Tesla doesn't offer the Model 3 in that color. I loved the Model S when it came in silver - I hope this is a sign that they'll offer that color on other models more consistently - it looks great.
05-28-20, 11:07 AM
#6
Just bad timing for the person who bought a day earlier (unless Tesla is going to offer a "price adjustment" for those people)? Seems like this sort of thing happens all the time in retail, no?
05-28-20, 11:08 AM
#7
They offered it in the first year of production of the 3 but cut it shortly thereafter. I saw one at a supercharger last year and it's a nice shade of silver
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05-28-20, 11:15 AM
#8
Lexus Test Driver
Most consumers don’t want EVs when gas prices are below $2.00
Tesla will have it’s niche and lead EV market for at least next 10years but most cars will continue to be gas powered for foreseeable future.
i expect Ford to take huge losses on their Mustang EV crossover.
Tesla will have it’s niche and lead EV market for at least next 10years but most cars will continue to be gas powered for foreseeable future.
i expect Ford to take huge losses on their Mustang EV crossover.
05-28-20, 12:17 PM
#9
Intermediate
This is not a good sign but I bet the stock booms and some will say this is bullish for Tesla. The demand must really be drying up between unemployment and gas prices 
05-28-20, 12:23 PM
#10
Lexus Test Driver
Well, they didn't include the Model Y on the list and that's where all the Tesla demand is right now. Model 3 sales were declining in North America as soon as Model Y hit so i'm not surprised at their discounting. The Model S and X are pretty niche and to offset the $5k discount, they removed the free Supercharging. I see a lot more Model Ys these days. I bet this eats into RX sales.
05-28-20, 01:29 PM
#11
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Where is gas prices $2.00? Before Covid, premium gas was 3.80 in the Bay Area, and then dropped to a low of $3.15. Now, it is already back to $3.40. I would argue that most Tesla customers are going to be coastal, where gas prices will always be high compared to states in middle America.
05-28-20, 02:25 PM
#12
Pole Position
Where is gas prices $2.00? Before Covid, premium gas was 3.80 in the Bay Area, and then dropped to a low of $3.15. Now, it is already back to $3.40. I would argue that most Tesla customers are going to be coastal, where gas prices will always be high compared to states in middle America.
05-28-20, 03:50 PM
#13
Lexus Fanatic
iTrader: (20)
Well, they didn't include the Model Y on the list and that's where all the Tesla demand is right now. Model 3 sales were declining in North America as soon as Model Y hit so i'm not surprised at their discounting. The Model S and X are pretty niche and to offset the $5k discount, they removed the free Supercharging. I see a lot more Model Ys these days. I bet this eats into RX sales.
05-28-20, 04:12 PM
#14
Lexus Test Driver
i bet a lot of people want Y's that previously were interested in 3's, but with reports of foul production quality, not to mention the pandemic, not to mention unemployment, i bet tons are holding off entirely. this crushes ALL tesla sales. they chose not to discount Y's because they're the new shiny object.
filled my car on saturday... was $1.85 a gallon!
filled my car on saturday... was $1.85 a gallon!
05-28-20, 04:22 PM
#15
Lexus Fanatic
Here's a little secret. People buy Tesla because it's a good car not just because it's an EV.