AUTO

Tesla Dropped Prices Again!

September 4, 2023

Tesla also dropped prices on the performance-enhanced Model X and S Plaid trims.
The Model X has a starting sticker price under $80,000.
Tesla also stopped charging buyers for premium paint colors.

In 2022, the Tesla Model Y ranked number 6 on the list of best-selling vehicles in the United States. It is nestled in between the legendary top-selling Toyota Camry and the popular GMC Sierra full-size pickup truck. Tesla seems bound and determined to become the top-selling auto brand thanks to its continuing price drops, including the latest price cut to the Model S and Model X.

On September 1, Tesla surprised the automotive industry with another price drop – between 15% and 19% to its top trims. The tech company also announced that it will no longer produce the Standard Range version of both models. It’s an odd move, considering that Tesla only announced a Standard Range model a few weeks ago.

New Sticker Prices

The new starting price of the Model S is $74,990, which is $3,500 less than the Model S cost in August. The Model X sticker price is $79,900, a drop of $8,500 from the price on August 31.

Tesla also lowered the price on the performance-tuned Plaid models, which are now $89,990 – a substantial drop from the previous sticker price of $108,490 on August 31.

Tax Credit Opportunity

With sticker prices under $80,000, the Model X now qualifies for the $7,500 Inflation Reduction Act tax credit. If you purchase the Model X and get the tax credit, the speedy model is now less expensive than the Model S. Unfortunately, the Model S is considered a car, so it does not fall below the $55,000 tax credit car cap. The truck and SUV cap is $80,000.

The price drop includes an additional bonus: all paint colors (black, blue, grey, red, and white) are included in the base models.

Remember, the IRA tax credit is only for individual filers earning $150,000 or less or married filers earning $300,000 or less. The only Model X that qualifies for the tax credit is the bare-bones base model, as all options (except paint colors) push the luxury SUV over the magic number of $80,000.

Why Did Tesla Drop Prices?

Automakers don’t often drop prices, especially several times in a calendar year. Tesla lowered prices with the expectation that lenders will restrict credit options. Throughout the year, some lenders have already reduced lending options, especially for used car dealerships.

Range in the Model S and X

With the drop of the Standard Range, the entry-level Model S has an impressive EPA-estimated range of 405 miles, while the base Model X can travel approximately 348 miles between charges.