Tesla has cut the prices of its top-end Model S and Model X electric cars by $5,000 (5.2 percent) and $10,000 (9.1 percent) respectively, based on changes to its website seen by TechCrunch.
It’s the second time this year that the company has cut prices, bringing the Model X down to $21,000 from $120,990 at the start of the year to just $99,990 today. Meanwhile, the Model S has fallen from $104,990 to $89,990 since January 1, a sharp drop of $15,000.
Neither car qualifies for the federal tax refunds that are due at the end of this month, as they only apply to SUVs priced under $80,000 and cars under $55,000. Still, they are likely to push many cheaters over the edge. That matches what CEO Elon Musk said at Tesla Investor Day, that “people’s desire to own a Tesla is extremely high… [but] the limiting factor is your ability to afford a Tesla.”
Most Model 3 and Y vehicles qualify for the rebates, thanks to Tesla’s January price cuts for those EVs. (As a reminder, this is a “non-refundable” tax credit, so you’ll only benefit if you have a federal tax liability of at least $7,500.) However, after mid-March, the the rules will change and many EVs that currently qualify may no longer be eligible.
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