Tesla Cuts Model S and X Prices
In March 2023, Tesla Inc. announced another round of price cuts for its higher-end Model S and Model X electric vehicles. This came just seven weeks after the company reduced prices across its entire lineup. The price of the Model S now starts at $89,990 and the Model X starts at $99,990 in the US, representing a respective 5.3% and 9.1% reduction from the previous prices. The prices of the high-performance Plaid versions of each vehicle were also reduced by 4.3% and 8.3%.
The reduction in prices for the Model S and Model X Plaid versions means that they now cost $26,000 and $29,000 less than they did in early January 2023, respectively. Tesla’s CEO, Elon Musk, stated that reducing prices has led to increased demand for Tesla’s electric vehicles, and he expects demand to “go crazy” as the company makes its cars more affordable.
Tesla’s dynamic pricing is unique in the automotive world, where manufacturers typically only make changes to what they suggest their retailers charge from one model year to the next. Tesla’s pricing changes are consistent with the company’s strategy of squeezing expenses out of its manufacturing process to unlock more demand.
While the Model S and Model X represent just over 5% of Tesla’s vehicle deliveries, the pricing changes could still impact the company’s bottom line and EV market dynamics. However, the cuts are consistent with the company’s efforts to cut costs and increase its global manufacturing competitiveness.
TSLA Stock Price Forecast & Analysis
According to the forecasts from 46 analysts, the average target price for Tesla Inc over the next 12 months is USD 231.36, with an average analyst rating of Strong Buy. Stock Target Advisor’s analysis of Tesla Inc’s stock is Slightly Bullish, based on 11 positive signals and 5 negative signals. As of the last closing, Tesla Inc’s stock price was USD 197.79, having changed by +0.46% over the past week, +4.11% over the past month, and -29.22% over the last year.