Tesla slashes thousands of dollars off the price of new electric cars

Tesla cut prices overnight on its three-strong line of electric vehicles by as much as 6% in North America. The biggest price reductions come on Tesla’s older Model S and Model X, while the smaller and newer Model 3 sees smaller cuts. The automaker hasn’t offered any reason for the discounts, but it’s not a stretch to assume Tesla is looking to boost sales that went stagnant in the wake of the coronavirus pandemic and related shutdowns across much of the country.

Right now, Tesla website’s shows the starting price for its Model S sedan is now $74,990, a $5,000 drop from what was displayed just yesterday. The Model X SUV now starts at at $79,990, $5,000 less than the $84,990 sticker from before. Upgraded Model S and X Performance variants saw matching $5,000 cuts.

The lowest-priced Model 3 sedan is $2,000 cheaper at $37,990. The Long Range starts at $46,990 and the Performance at $54,990.

Tesla also said its Supercharger quick-charging service will no longer be free to new customers of its Model S sedans and Model X sport utility vehicles (SUVs).

Auto retail sales in the United States likely halved in April from a year earlier, showed data from J.D. Power. However, sales in May are likely to improve due to pent-up demand and incentives offered by most carmakers, the analytics firm said.

Automakers including General Motors, Ford and Fiat Chrysler are offering 0% financing rates and deferred payment options for new purchases.

Factories in the United States started to reopen earlier this month with suppliers gearing up to support an auto industry employing nearly 1 million people.

Tesla was briefly forced to stop work at its Fremont, California, factory due to stay-at-home orders. It resumed production after resolving a dispute over safety measures with local authorities.

Tesla said it will also cut prices in China — as per usual after price adjustments in the United States — by around 4% for the Model X and Model S.

Tesla China, which is delivering Model 3 sedans from its Shanghai factory, in a Weibo post said it has also cut prices for the Model S and Model X cars it imports, but will keep prices of locally made Model 3 cars unchanged.

Material from Reuters was used in this report.

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