Tesla Lowers US Price of Model S

New competitors are also causing price battles in the electric luxury segment: After Lucid announced prices for the base model and opened the order books, Tesla immediately lowered the prices for the Model S, at least in the US and China. The Model S Long Range Plus is now slightly cheaper in the US than the announced base model of the Lucid Air after the tax credit. And after the US price for the Long Range Plus and Performance variants had already been lowered by $3,000 each to $71,990 and $91,990 respectively at the beginning of the week, there was now a further reduction for the base version Long Range Plus to $69,420.

The reason could be the Lucid Air: It now starts at $77,400. Since Lucid Motors has not yet delivered an electric car to customers, the full tax credit of $7,500 is still granted, bringing the entry price to $69,900 – a value that Tesla now undercuts by $480. Background: Tesla has already sold so many electric cars in the US that there is no longer a tax credit there. In Germany, the Model S Long Range is listed at €76,990, which corresponds to the last price reduction from the beginning of this week. It is quite possible that the price will soon be further reduced here as well, especially since Lucid Motors also intends to come to Europe soon.

Tesla introduces the Model Y as a seven-seater

Meanwhile, the seven-seater Model Y is actually being implemented, which will go into production in November 2020 and be delivered from December. The seven-seater is expected to cost an additional $3,000 in the US, and in the German configurator, this variant costs €3,100 more. However, the space available is likely to be much more limited than in the Model X.

What does this mean?

Competition stimulates business: Tesla could be responding to Lucid Motors with the price reductions, especially since more electric cars in the luxury segment have been announced from 2021 onwards. Thus, the Model S could also benefit from a major revision. It remains to be seen.