Tesla shares rise amid discounts on cars in U. S.

Tesla shares rise amid discounts on cars in U. S.

Budrigantrade.com - Tesla Inc. has reduced the prices of its two most expensive electric vehicles in the United States, according to the company's website. This comes just a few days after Tesla CEO Elon Musk stated that recent price reductions on other models had increased demand.

Tesla's price reductions (NASDAQ:) Musk has stated numerous times in recent months that Tesla would focus on bringing prices down to drive demand and that it had seen success in sparking orders with global discounts introduced in January. This was the company's fifth adjustment since the beginning of the year, and it ranged from 4% on the performance version of the Model S to 9% on the more expensive Model X.

"People have a very strong desire to own a Tesla. "Their ability to pay for a Tesla is the limiting factor," Musk stated last week at Tesla's investor day.

When asked to comment on the most recent price cuts, Tesla did not immediately respond.

In January, Tesla slashed the prices of its cars in all of its markets, offering discounts of up to 20%. This was seen by many analysts as the beginning of a price war by the leader in the electric vehicle market.

In an industry in which a car's base price is still referred to as a "sticker price" on an inventory vehicle, it has been adjusting prices at a pace and frequency that exceeds what established automakers have attempted.

In 2022, approximately 4% of Tesla's global deliveries were of the Model S and Model X, which are available in base all-wheel drive (AWD) and performance "Plaid" editions, respectively. The remainder was made up of its two less expensive models, the Model Y crossover and sedan.

On its website, Tesla claimed to have reduced the prices of its two Model S models by $5,000. The price of the performance, plaid-colored Model S was reduced by 4% to $109,990, while the price of the basic model was reduced by 5% to $89,990.

According to the electric vehicle manufacturer's website, there was a $10,000 price reduction for both the basic and performance Model X models. The basic Model X with AWD was reduced by 9% to $99,990, while the performance Plaid version was reduced by 8% to $109,990.

According to Reuters, Tesla plans to produce a new Model 3 with the codename "Highland" later this year and a new Model Y with the codename "Juniper" for next year.