Tesla Again Cutting Price of Model S, Musk Says

For the second time in a matter of only days, Tesla (NASDAQ:TSLA) is reducing the price of its Model S sedan. That’s according to the company’s colorful CEO Elon Musk, who announced this in a Wednesday afternoon tweet, reading in its entirety:

The gauntlet has been thrown down! The prophecy will be fulfilled. Model S price changes to $69,420 tonight.

The contest Musk appears to be referring to is with Lucid Motors, a privately held rival whose CEO and CTO is one-time Tesla executive Peter Rawlinson. Earlier on Wednesday, Lucid announced that the starting price of its upcoming Lucid Air sedan would be $69,900, once a federal tax rebate kicks in.

A Tesla Model S on the road.

Image source: Tesla

In what’s likely not a coincidence, Rawlinson’s position at Tesla was vice president and chief engineer for Model S, according to his LinkedIn page.

Musk’s pronouncement marks the second time this week the sticker price of the Model S has been lowered. It was first cut from $74,990 to $71,990.

Lucid Air has not yet reacted to or made a formal statement about Musk’s pronouncement.

The Model S is one of the better-established electric vehicles (EVs) on the market. It first rolled out of Tesla factories in 2012. Yet its positioning as a premium car limits its potential customer base — in Q3, for example, the company delivered 15,200 Model S and its similarly premium Model X SUV. By comparison, the more budget-priced Model 3 sedan and the Model Y SUV combined for 124,100 deliveries.

Few investors are happy with price cuts. On Thursday, they seemed to indicate their displeasure with Tesla’s latest one[s], bidding the stock down by 2.7% on the day.

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Tesla CEO Musk Says Model S Price to Be Cut for Second Time This Week



a car parked in a parking lot: Tesla CEO Musk Says Model S Price to Be Cut for Second Time This Week


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Tesla CEO Musk Says Model S Price to Be Cut for Second Time This Week

Tesla CEO Elon Musk said prices for the company’s flagship Model S sedan would be cut for the second time in a week.

Tesla said Tuesday it would be reducing prices on its entry-level Model S available for delivery by $3,000 to $71,990. It also reduced its Tesla Model S Performance Model to $91,990 from $94,990.

A day later, Musk said in a tweet that a second price reduction was on the way.

“The gauntlet has been thrown down! The prophecy will be fulfilled. Model S price changes to $69,420 tonight!” Musk tweeted on Wednesday.

https://twitter.com/elonmusk/status/1316454051693895680

Following Tuesday’s price reduction, the Model S currently starts at $71,990. If Musk follows through with what he said in his tweet, the base price will come down by another $2,570, or 3.5%, according to Tesla Daily’s Rob Maurer.

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Musk’s tweet followed an announcement from Lucid Motors that its lowest-trim, all-electric Lucid Air would start at $69,900, after a federal tax credit of $7,500 for which Tesla no longer is eligible.

The Lucid Air has a projected range of 406 mikes for the base model, while the Model S has a range of 402 miles per charge.

The Model S price cuts follow reductions across Tesla’s lineup earlier this year that affected Model 3, Model S, and the six-seat Model X.

Back in May, Tesla already had reduced the price of the Model S Long Range Plus by $5,000 for a starting point at $74,990. Earlier this month, the electric vehicle maker cut prices for the cheapest version of its Model 3 by 8% to $37,000 after subsidies.

The moves come as Tesla continues to surprise investors and analysts with its better-than-expected output and global sales trajectory, despite Covid-19 headwinds and increasing competition from the likes of Volkswagen, General Motors , Ford and others.

Tesla declined 3.19% in premarket trading to $446.60.

On Thursday, the stock price target on Tesla was raised to $450 from $360 by analysts at Baird.

This article was originally published by TheStreet.

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Tesla to reduce Model S price again as Elon Musk takes shot at Lucid

Tesla CEO Elon Musk says the automaker will reduce the price of the Model S again after Lucid Motors tried to undercut them with the base version of the Air.

Yesterday, Tesla reduced the price of the Model S by $3,000 to $71,990.

Today, Lucid announced the price and specs of the base version of the Air, its luxury electric sedan expected to compete with the Tesla Model S.

The price starts at $77,400 before incentives ($69,900 after federal tax credit) and it has a range of 406 miles — 4 more miles than the Model S.

Tesla CEO Elon Musk seems to have noticed the move since he has now announced that Tesla will lower the price of the Model S even further:

He announced that the price will change again tonight to $69,420. Yes, that’s the third richest man in the world making a ’69’ and weed joke that is known to be mostly funny to 12-year-old boys.

Tesla buyers don’t have access to the federal tax credit for electric vehicles in the US anymore, but the price will still be lower than Lucid Air.

It will be the third time this year that Tesla has slashed the price of the Model S.

The electric sedan started the year at $80,000.

Electrek’s Take

As we have been reporting during the launch of the Air, it looks like we are starting to witness the start of a healthy competition between Tesla and Lucid.

Both companies have been bringing their top performance prototypes to the Laguna Seca racetrack to beat each other’s records.

In some ways, Lucid spun out of Tesla.

It was founded by a Tesla director back when it was called Atieva and now it is led by Peter Rawlinson who used to be the chief engineer of the Model S program.

Elon even belittled Rawlinson’s contribution to Tesla, which makes me think that he is taking Lucid seriously.

Anyway, competition is good.

It will push the industry faster.

However, I don’t get Tesla’s additional price drop on the Model S. The base version of the Air is not coming until early 2022.

The Model S is available right now.

I don’t think it will make a big difference for Tesla until Lucid starts actually delivering the Air — even the higher-end versions next year.

What Model S really needs is an interior refresh — something Tesla has been delaying since last year.

Tesla dropped the price of the Model S by $8,000 this year alone and sales are still going down. I doubt the price will have a big effect at this point.

If people want a cheaper Tesla, they will buy a Model 3 at that point.

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Tesla Model Y 7-seater will begin production in November: Elon Musk

  • Elon Musk tweeted that his electric vehicle company Tesla will start making its seven-seater Model Y in November.
  • He said “initial deliveries” of the car will arrive in December.
  • Tesla’s website says the seven-seater version of the Model Y won’t be available until 2021.
  • The seven-seater model is $3,000 more than the base Model Y, and comes with a third row of seats.
  • Visit Business Insider’s homepage for more stories.

US electric vehicle company Tesla will start making a seven-seater version of its Model Y in November.

Tesla’s founder and CEO Elon Musk tweeted on Wednesday that production of the highly-anticipated electric car will begin next month, ahead of deliveries in early December.

The Tesla website says that the seven-seater Model Y, which starts at $51,190, won’t be available until 2021.

Tesla unveiled the Model Y at the carmaker’s design studio near Los Angeles in March 2019. Musk said the electric vehicle will transform Tesla’s manufacturing process, and could eventually outsell every other Tesla combined. 

The crossover SUV comes with a third row, offering space for up to seven passengers. It costs $3,000 more than the base model.

The Model Y, which is fully electric, can drive for up to 314 miles on a single charge.

It can be recharged at one of the 18,000 Supercharger locations worldwide, and takes 15 minutes to recharge it to an 168-mile range.

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Tesla CEO Musk Cuts Model S Price for Second Time This Week

Tesla  (TSLA) – Get Report CEO Elon Musk said prices for the company’s flagship Model S sedan would be cut for the second time in a week.

Tesla said Tuesday it would be reducing prices on its entry-level Model S available for delivery by $3,000 to $71,990. It also reduced its Tesla Model S Performance Model to $91,990 from $94,990.

A day later, Musk said in a tweet that a second price reduction was on the way.

“The gauntlet has been thrown down! The prophecy will be fulfilled. Model S price changes to $69,420 tonight!” Musk tweeted on Wednesday.

Following Tuesday’s price reduction, the Model S currently starts at $71,990. If Musk follows through with what he said in his tweet, the base price will come down by another $2,570, or 3.5%, according to Tesla Daily’s Rob Maurer.

Musk’s tweet followed an announcement from Lucid Motors that its lowest-trim, all-electric Lucid Air would start at $69,900, after a federal tax credit of $7,500 for which Tesla no longer is eligible.

The Lucid Air has a projected range of 406 mikes for the base model, while the Model S has a range of 402 miles per charge.

The Model S price cuts follow reductions across Tesla’s lineup earlier this year that affected Model 3, Model S, and the six-seat Model X.

Back in May, Tesla already had reduced the price of the Model S Long Range Plus by $5,000 for a starting point at $74,990. Earlier this month, the electric vehicle maker cut prices for the cheapest version of its Model 3 by 8% to $37,000 after subsidies.

The moves come as Tesla continues to surprise investors and analysts with its better-than-expected output and global sales trajectory, despite Covid-19 headwinds and increasing competition from the likes of Volkswagen, General Motors  (GM) – Get Report, Ford  (F) – Get Report and others. 

Tesla declined 3.19% in premarket trading to $446.60.

On Thursday, the stock price target on Tesla was raised to $450 from $360 by analysts at Baird.

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