Tesla has cut the prices of its high-end Model S and Model X electric cars by $5,000 (5.2 percent) and $10,000 (9.1 percent) respectively, according to changes in its website seen by TechCrunch.
It’s the second time this year the company has chopped prices, so the Model X has dropped $21,000 from $120,990 at the beginning of the year to just $99,990 currently. The Model S, meanwhile, has fallen from $104,990 to $89,990 since January 1st — a steep $15,000 reduction.
Neither car qualifies for Federal Tax rebates set to expire later this month, as those only apply to SUVs priced below $80,000 and cars under $55,000. Still, they’re likely to push many fence-sitters over the edge. That tracks with what CEO Elon Musk said on Tesla Investor’s Day, that “the desire for people to own a Tesla is extremely high… [but] the limiting factor is their ability to pay for a Tesla.”
Most Model 3 and Y vehicles do qualify for the rebates, thanks to Tesla’s January price cuts on those EVs. (As a reminder, it’s a “nonrefundable” tax credit, so you’ll only benefit if you have a federal tax liability of at least $7,500.) After mid-March, however, the rules will change and many EVs that currently qualify may become ineligible.
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