As Elon Musk’s SpaceX tried to soar to new heights Wednesday, Tesla announced it would bring down its car prices.
His electric vehicle and clean energy company reduced the price of the Model 3, Model S, and Model X in North America, reflected on Tesla’s website.
• The lowest-priced sedan, the Model 3, dropped $2,000 across all trims, with the entry-level Standard Range Plus Model 3 now starting at $37,990.
• Model S gets a $5,000 price cut, now starting at $74,990 for its entry-level Long Range Plus version.
• Model X also dropped by $5,000, now starting at $79,990. Its Performance version got a $5,000 cut.
• Model Y, Tesla’s newest car, is staying put at $52,990.
And now, the higher-end Model S sedans and Model X sport utility vehicles won’t come with free Supercharger quick-charging fill-ups for new purchases. Tesla, like many car manufacturers, is looking to stimulate sales after the decline in demand caused by the coronavirus pandemic.
AutoData Solutions, which analyzes monthly auto sales, said the pace of auto sales in April 2020 was the lowest sales rate since the firm started calculating the data in 1980. Tesla recently restarted production at its Fremont, California, facility recently after a dispute with Alameda County officials over the safety precautions needed to operate the factory during the ongoing pandemic.
How the latest price fluctuations play out with investors also remains to be seen. So far, the results are mixed, at best. Tesla’s stock has been teetering Wednesday between a loss of 0.8% and 1%, before market close. Musk earlier in the month had tweeted the stock price was “too high.”