According to CarGurus, prices overall are down less than 2% for the month, while prices for Teslas are down 8%. Used car prices in general finally started trending down last year, after a precipitous rise. Ford cut the prices for the Mustang Mach-E this week in response to Tesla's price cuts. The Ford Mustang Mach-E is on display during the 19th Shanghai International Automobile Industry Exhibition in Shanghai on April 20, 2021.
Prices dropped by between $900 and $5,900, depending on the vehicle's options. On Monday, Ford announced it was cutting prices on the Mustang Mach-E, an electric SUV that competes against Tesla's Model Y. When a leading company cuts prices, all their rivals feel pressure to follow suit - it's economics 101.Īnd the textbook scenario is playing out in the headlines. Others are now under pressure to cut prices Here's how the announcement is having ripple effects, from the impact on Tesla owners to the changes it could spur across the auto industry. So what was so special about these price cuts? And what do they mean?Ī lot, actually. Last month, Tesla dropped its prices dramatically - up to 20%.Īuto companies offering discounts to promote sales is nothing new, but this move sparked a lot of reaction. Tesla recently cut prices across the board, a move with big potential ramifications for the automaker as well as for the industry. Tesla has a new version of the Model 3 codenamed “Highland” scheduled to go into production later this year and a change to the Model Y codenamed “Juniper” for next year, Reuters has reported.A Tesla car is displayed at a showroom and service center for the auto maker in Amsterdam on Oct. The price of the basic, AWD version of the Model X was cut by 9% to $99,990 while its performance Plaid version was cut by 8% to $109,990. Prices of both the performance and basic variants of Model X cars were cut by $10,000, the electric vehicle maker’s website showed. The basic version of Model S was cut by 5% to $89,990, while the price of the performance, Plaid variant was cut by 4% to $109,990. Tesla’s website showed it had cut prices on both versions of its Model S by $5,000. Its two cheaper models, the Model 3 sedan and Model Y crossover, made up the rest. The Model S and Model X, which come in base all-wheel drive (AWD) and performance “Plaid” editions, represented about 4% of Tesla’s global deliveries in 2022. It has been adjusting prices since with a pace and frequency that goes beyond what established automakers have attempted in an industry where a car’s base price is still referred to as a “sticker price” on a vehicle in inventory. Tesla slashed prices on its cars across all its markets in January, offering discounts of up to 20% in what many analysts saw as the start of a price war by the electric vehicle market leader. Tesla did not immediately respond to a request for comment on the most recent price cuts. The limiting factor is their ability to pay for a Tesla,” Musk said last week at Tesla’s investor day. “The desire for people to own a Tesla is extremely high.
Musk has said repeatedly in recent months that Tesla would focus on bringing prices down to drive demand and that it had seen success in sparking orders with global discounts introduced in January.
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