April 3, 2023

Tesla Reduces Price


Tesla Planing To Reduces Price

Tesla Motors Inc. released a lower-priced version of its Model S electric sedan, a move to tap into the huge enthusiasm for its coming Model 3 and boost flagging sales growth of its existing cars.

Tesla Reduces Price
Tesla Reduces Price

It began selling a $66,000 version of its Model S with a battery modified to limit its travel range to about 200 miles on a charge. The price is 9% below the prior lowest-cost model. Tesla is reviewing the suspension issue but hasn’t found it to be a widespread problem.

For now, the newest versions of the Model S will be built using a 75-kwh battery and their range will be capped by software at about 200 miles. Customers can unlock the additional travel range by paying an additional $9,000. Almost all the mass-market vehicles sold above that price threshold are SUVs and trucks.

It’s not known just how many cars Tesla has sold in the US since the Roadster debuted in 2008. The automaker didn’t start breaking down sales by region US, Europe, etc. The distinction Tesla is making here between the price before and after tax subsidies is crucial.

Looking ahead, Tesla plans to sell about 90,000 Model S and Model X cars this year. We already know that about half of all Model S sedans sold in the past two years went to American buyers, and there’s no reason to believe that would change this year.

To understand why pricing is so important, just look at what Americans are currently willing to spend.  With that in mind, Tesla is halfway to the 200,000 mark by the end of December.  Buyers typically spend more than $100,000 apiece on a Tesla vehicle to purchase added battery power, additional seating and other options.

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