Tesla drops price for Model S/X further

[NewEnglander]

Model S cut by 5K to $89,900 and X by 10k to $99,990. This may further pressure Lucid to keep $7500 rebate longer than planned.

 

[Tim-in-CA]

Based on the margins Tesla is commanding, they can afford to drop pricing to combat competition.

 

[Drendino]

Model S cut by 5K to $89,900 and X by 10k to $99,990. This may further pressure Lucid to keep $7500 rebate longer than planned.

Just wow! That’s going to put a lot of pressure on Gravity as well.

 

[Tesla2.0]

Face it! The Model S further cut is aiming to hinder Lucid Air Pure demand and Model X cut is curbing ever growing Rivian R1S orders.

 

[Tesla2.0]

Public known data - Tesla's sold 1.31 million Teslas. The Model 3 and Model Y make up around 95% of the 1.31 million Teslas sold in 2022.

That makes Model S and X roughly around 65,500 units sold. Facing many new market entrants, this move is targeting more to Lucid Air, MB EQS, Rivian R1S, BMW iX and Porsche Taycan

 

[CraZ8]

The model S and X are 11 year old designs with incremental improvements, Musk can afford to cut margins to keep them competitive. It does play havoc with people ordering new ones or selling their used S and X and certainly erodes some brand loyalty. I had a friend that worked for Tesla who was friends with one of the high up engineers who confided with my buddy ( this was about 4 years ago) that it only cost Tesla about 53k to make a modelS. That’s a hell of a mark up even back then.

 

[xponents]

I mean, its getting closer to where it should be.(70-80k) Nevertheless, this puts some huge pressure on gravity. Or lucid recognizes its the "apple" of cars and just prices them normally, but being a new company that would not be good.
Also, can we note that the pure is still cheaper?

 

[Sid432]

Yeah, not sure if they will reduce the price of Pure to OG price of $77k… It would be interesting to see…

 

[xponents]

Yeah, not sure if they will reduce the price of Pure to OG price of $77k… It would be interesting to see…

But why? Its already cheaper than the model s and better? Now I could foresee a change to 85k so that when SSP is added, it would be the same price as a model s.

 

[joec]

I keep saying this, but it bears repeating: A race to the bottom on price is a race Lucid cannot win. All this can do is further eat into already too small margins and put Lucid out of business. Musk knows this. That’s why he’s doing it.

The smarter play is to not play, so to speak.

 

[xponents]

This makes me want to punch a wall. THE TOURING IS NOT A BASE

 

[tmilone103]

I keep saying this, but it bears repeating: A race to the bottom on price is a race Lucid cannot win. All this can do is further eat into already too small margins and put Lucid out of business. Musk knows this. That’s why he’s doing it.

The smarter play is to not play, so to speak.

I don't really think Musk really cares much about Lucid.. He is lowering the price of the S & X because sales are down and they have inventory building up and not enough demand to move them. Lowering the price was needed or he would not move them or would have to slow down production which would be bad for its business goals. He did the same for the 3 & Y a few months ago when inventory built up and he moved them with the lower price. The price on the Y was recently raised higher to balance production and demand.

 

[Tesla2.0]

This may not be end of price dropping, consider Fed’s interest rate hike to combat inflation will continue this year.

 

[Rob Stark]

Tesla wants to sell 1.9M Model 3/Y units globally.

And 100k Model S/X units globally. For a total of 2M units for 2023.

It is adjusting prices up and down to get that level of demand.

I don't think Tesla cares much about Lucid,Rivian,Taycan or anyone/anything else much.

 

[Lucken]

I keep saying this, but it bears repeating: A race to the bottom on price is a race Lucid cannot win. All this can do is further eat into already too small margins and put Lucid out of business. Musk knows this. That’s why he’s doing it.

The smarter play is to not play, so to speak.

I'd say there's a decent chance they'll lose some Pure reservations to the MS with the price cut, especially those that don't know about Tesla build quality and are enamored with the SC network. Hopefully it won't be many.

 

[Drendino]

Face it! The Model S further cut is aiming to hinder Lucid Air Pure demand and Model X cut is curbing ever growing Rivian R1S orders.

Most definitely. Can’t beat them on quality, so he’s trying to beat them on price.

 

[Daniel2022AT]

Musk is of course very smart. It is a classic strategy. Try to co-opt new entrants by elbowing them out. And, when you cannot compete on product, you have to compete on price. Remember the Tesla S base price was $75k not that long ago.

We are indebted to Musk for what he did for the EV industry. The Model S was a very cool car in its day. That day has long since passed.

 

[Tesla2.0]

Tesla wants to sell 1.9M Model 3/Y units globally.

And 100k Model S/X units globally. For a total of 2M units for 2023.

It is adjusting prices up and down to get that level of demand.

I don't think Tesla cares much about Lucid,Rivian,Taycan or anyone/anything else much.

That’s another 55% growth target for Model-S and Model-X. The thing is the growth rate of these 2 models are showing exhaustion while facing many new German/luxury entrants. Of course, Musk needed to drive back demand to cut prices. Tesla loved their past net 33% vs 9% margin of GM and Ford. Not anymore have software company industry margin as reality hits. Master Plan #3 isn’t really any genius plan, it’s just drop margin like legacy automakers to inflate demand, in addition of their ongoing of optimizing assembly process and deleting or merging parts. Unless Tesla releases new products, they are basically artificially boost their numbers to maintain their stock price.

 

[HariK]

Did you notice that model s now has 8 cameras vs 16 in lucid, no radar, never had lidar. Base pure has no lidar but otherwise way better than model s.
The interior and the fit and finish of model s are not even comparable to a Toyota camry. So now that there is superior competition, perhaps tesla model s is priced below the superior base pure. You do get what you pay for in this case.

 

[DBV]

Did you notice that model s now has 8 cameras vs 16 in lucid, no radar, never had lidar. Base pure has no lidar but otherwise way better than model s.
The interior and the fit and finish of model s are not even comparable to a Toyota camry. So now that there is superior competition, perhaps tesla model s is priced below the superior base pure. You do get what you pay for in this case.

A Toyota Camry? Haha, that is crazy statement that is totally incorrect. Some members on this forum just love to diss on Tesla and just makes no sense to me. I still think the Model S is a great car and its main competition with Lucid is the Touring. There are pluses/minuses with every car with Lucid included. I get it you own a Lucid, but why diss the competition so much. And for the record, I have a Lucid on order and may also keep my Model S too, so please don’t diss me either.