Tesla Reduces Model S Price Again, Musk Says

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For the second time in just a few days, Tesla (NASDAQ: TSLA) slashed the price of its Model S sedan. That’s what the company’s colorful CEO Elon Musk said in a Wednesday afternoon tweet, reading in its entirety:

The glove has been thrown away! The prophecy will be fulfilled. The Model S price drops to $ 69,420 tonight.

The competition Musk seems to be referring to is with Lucid Motors, a private rival whose CEO and CTO is Peter Rawlinson, a former Tesla executive. Earlier Wednesday, Lucid announced that the starting price for its next Lucid Air sedan will be $ 69,900, once a federal tax cut takes effect.

Image source: Tesla

Which is probably not a coincidence, Rawlinson’s job at Tesla was vice president and chief engineer of Model S, according to his LinkedIn page.

Musk’s statement marks the second time this week that the Model S’s sticker price has been lowered. It was first reduced from $ 74,990 to $ 71,990.

Lucid Air has yet to react or make an official statement about Musk’s statement.

The Model S is one of the most established electric vehicles (EVs) on the market. It was first rolled out at Tesla factories in 2012. Yet its positioning as a premium car limits its potential customer base – in the third quarter, for example, the company delivered 15,200 Model S and its Model SUV. X similar high end. In comparison, the more economical Model 3 sedan and the Model Y SUV combined for 124,100 deliveries.

Few investors are happy with the price cuts. On Thursday they appeared to indicate their displeasure with Tesla’s latest[s], causing the stock to fall 2.7% on the day.



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