According to changes made to its website, Tesla has reduced the prices of its high-end electric cars, the Model S and the X, by $5,000 (or 5.2%) and $10,000 (or 9.1%), respectively.
The Model X has dropped $21,000 from $120,990 at the beginning of the year to just $99,990 at the moment, marking the company’s second price cut this year. Since January 1st, the Model S has dropped from $104,990 to $89,990, a steep $15,000 decrease.
Because they only apply to SUVs priced below $80,000 and cars priced below $55,000, neither vehicle is eligible for the Federal Tax rebates, which will come to an end later this month. However, there is a good chance that many skeptics will give in. That tracks with what President Elon Musk said on Tesla Financial backer’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.”
Due to Tesla’s price cuts for electric vehicles in January, the majority of Model 3 and Y vehicles are eligible for the rebates. As a reminder, this is a “nonrefundable” tax credit, so you can only use it if you owe $7,500 or more in federal taxes.) However, the rules will change in the middle of March, and many EVs that are currently eligible may no longer be eligible.
