Tesla Inc. cut the prices of its Model S and Model X vehicles in the U.S. late Sunday, in a bid to boost sales in the final month of the first quarter.
According to Tesla’s website, prices for the Model S sedan were cut by $5,000, with the basic version now costing $89,990, down from $94,990 previously, and the high-performance Plaid version starting at $109,990, down from $114,990. Prices for the Model X SUV were slashed by $10,000, with the basic version now costing $99,990, down from $109,990, and the Plaid version at $109,990, down from $119,990.
In January, Tesla, cut prices on its Model 3 and Model Y vehicles. While that raised some concerns on Wall Street of sagging demand and lower margins, Piper Sandler analysts said the move could succeed in boosting sales and increasing its market share.
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Last week, Tesla held its annual investor day and executives said the electric-vehicle maker was determined to cut manufacturing costs and prices for consumers. “The desire for people to own a Tesla is extremely high. The limiting factor is their ability to pay for a Tesla,” Chief Executive Elon Musk said, according to a FactSet transcript.
Tesla shares
TSLA,
have surged 60% year to date, but are still down about 30% over the past 12 months, compared to the S&P 500’s
SPX,
5% gain in 2023 and 6.5% decline over the past year.
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