Tesla Slashes Prices of Model X and S in Effort to Stimulate Sales

Picture: Bloomberg

In an attempt to boost sales in a highly competitive market, Tesla has lowered the prices of its two most expensive models, the Model S and Model X, in the U.S.

The company's website indicates that Tesla has cut the base price of its luxury sedan, the Model S, by about 5%, from $94,990 to $89,990, and the base price of its sport-utility vehicle, the Model X, by approximately 9%, from $109,990 to $99,990.

Despite representing only about 5% of Tesla's total vehicle production in 2022, the company is hopeful that these price cuts, combined with similar ones made in January for its two bestselling vehicles, will help drive demand. The company's CEO, Elon Musk, has suggested that even small price adjustments can have a significant impact on demand.

To maintain its lead in the market, Tesla is aiming to significantly increase its production capacity from about 1.3 million vehicles in 2022 to approximately 20 million vehicles per year. As part of this effort, the company announced last week that it intends to establish a new car manufacturing facility in Mexico.