Last week, Tesla surprisingly dropped prices on their best-selling Model 3 and Model Y models in the US. It has also done the same on their flagship Model S sedan and the Model X, and cut prices by as much as $US21,000 ($A30,000) on the world’s fastest production sedan, the Model S Plaid.
What were these price reductions and is it good news for hundreds of local order holders?
The fastest Plaid Model S sees the biggest price drop
Prices of Tesla’s flagship sedan, the Model S, have seen drops of between 9.5% and 15.4%. The Model S Plaid is the fastest production EV and has seen the most significant drop of $US21,000.
As supply chains improve and demand for luxury products like the high-end Teslas take a slight dip in the US Tesla has reduced prices across the Model S & Model X range to:
- Tesla Model S: Reduced from $104,990 to $94,990 USD
- Tesla Model S Plaid: Reduced from $135,990 to $114,990 USD
- Tesla Model X: Reduced from $120,990 to $109,990 USD
- Tesla Model X Plaid: Reduced from $138,990 to $119,990 USD
This makes the whole Tesla’s S3XY line-up more affordable than it was for most of last year.
The Tesla Model S & Model X had a refresh in mid-2021. Since then, the Plaid versions have been offering record-breaking performance and luxury.
At $US114,990 for the Model S Plaid, things have become a bit more challenging for the competition from ICE and EV performance model manufacturers.
Brands like Lucid and Porsche are currently going through a production ramp. They will find it very challenging to compete with the new prices from Tesla on these flagship sedan models.
Many of the recent Model 3 and Model Y reductions were significant and were in response to the new EV tax credit eligibility of these models.The Model S and Model X are not eligible due to their higher prices.
The reduction in price is seemingly to be on the back of production cost reduction, improving logistics costs and softer demand for some models within the US.
Australian order holders will have to continue waiting
Hundreds of Australian order holders who placed an order for the Tesla Model S as far back as late 2021 are still yet to receive confirmation of their delivery.
Given many of these vehicles have just started to be exported to other left-hand drive markets like Europe, the earliest for our right-hand drive versions in Australia looks to be Q4 of 2023.
For many, the lower US prices may translate into a drop in their prices locally in Australia.
Along with that, several new features have been added to the refreshed Model S and Model X since its orders opened in Australia. These may also make these EVs worth the wait.