Tesla took no memorable steps to adjust prices to meet or beat competing vehicles from major brands.
But it looks like Crosstown rival Lucid Motors is different.
Plaid Tesla Model S
Tesla CEO Elon Musk announced on Wednesday that “the gauntlet has been cast” – seemingly to refer to Lucid’s price of the base Air electric sedan, earlier in the morning – and noted, “The price of the Model S goes to $ 69,420 tonight! ”
The glove has been thrown away!
The prophecy will be fulfilled.
Model S price drops to $ 69,420 tonight!
– Elon Musk (@elonmusk) October 14, 2020
Musk did not say if the move was a response to Lucid’s pricing announcement today. But if not, that’s a coincidence, especially since Tesla just slashed Model S prices by $ 3,000 earlier this week.
From the currently listed price of $ 71,990, the discount represents another $ 2,570 discount for the Model S, or a total of over $ 5,500 off the Model S price this week compared to last week. .
Lucid has one command sheet advantage so far with the Air: Its predicted EPA range of 406 miles is 4 miles above what the Model S Long Range currently achieves for this price. However, deliveries of this version of the Air remain in a year or more.
Tesla’s new price for the Model S is a significantly lower initial cost than the Lucid Air, for which Lucid’s price tag of $ 69,900 is contingent on its eligibility for the full EV tax credit amount of $ 7,500 – and the eligibility of buyers to claim this amount. It’s fair to point out that not everyone will qualify for the electric vehicle tax credit; you need this tax liability to claim it.
Neither price includes the mandatory destination charge, which for Tesla is $ 1,200. We haven’t included it in this article for comparison purposes because Lucid has yet to set this amount.
Tesla entered a sunset period, with reduced amounts for the federal electric vehicle tax credit after selling a total of 200,000 eligible vehicles in the U.S. After December 31, 2019, Tesla buyers did not were not eligible for the credit.
Because very few of Musk’s games with numbers are a coincidence, we’ll also point out that the reduced price of $ 69,420 for the Model S also happens to be Lucid’s advertised price of $ 69,900 minus its rated horsepower, 480.
If Musk is rattled by how close the Air is to Model S territory, although the Air is a new design and the Model S is largely eight years old, it’s probably not just the car. . Lucid includes a house full of Tesla expats, including CEO Peter Rawlinson, who oversaw development work on the original Model S, and VP of manufacturing Peter Hochholdinger, who ramped up production of the Model 3. .
Along the same thread, Musk confirmed that production of the seven-seater (three-row) version of the Tesla Model Y begins next month, with first deliveries in early December. That puts it ahead of the company’s previous estimates – arriving around the same time as the first deliveries of the Volkswagen ID.4 and the Ford Mustang Mach-E, which Tesla has so far only shown. no interest in explicit price matching.
But remember that potential California rivalry? Consider it.