Photo: Unsplash/Afif Ramdhasuma
‘The X is now eligible for US tax incentives as well.’
Tesla’s Model S and X electric vehicles have experienced multiple price reductions this year, and the company has now announced another round of cuts to attract hesitant consumers. Starting today, Tesla has reduced prices on these cars by 15 to 19 percent, varying depending on the model and trim. This price drop is not limited to American consumers; similar discounts have been observed worldwide, according to EV experts at Electrek.
As of now, the base price for a Model S is $74,990, which is $3,500 lower than before. The Model X now starts at $79,990, a reduction of $8,500. Additionally, all color options are now included in the base price, eliminating the need for additional payments for aesthetic preferences. Customers can choose between white, black, gray, blue, or red.
However, this announcement brings both good and bad news. Tesla has discontinued the Standard Range version of both vehicles, which featured a smaller battery. Despite this, the new discounted prices on the Model X and S actually make them more affordable than the Standard Range vehicles.
Another noteworthy money-saving aspect is that the Tesla Model X now qualifies for a tax credit under the Inflation Reduction Act. The qualification threshold is $55K for cars and $80K for trucks and SUVs. In other words, the Model S remains too expensive, but the Model X falls just under the cost threshold for SUVs and trucks. This means that, as long as your annual income is less than $150K to $300K, depending on your marital status, you can purchase a base Model X at a lower price than a Model S.
The price cuts also extend to Europe and China, with similar discounts available in local currencies. While lower prices are undoubtedly appealing to potential customers, some existing Tesla owners have expressed concerns about the associated drop in resale values. Earlier this year, protesters in China demanded compensation for price reductions, but Tesla declined their requests.