Tesla (Nasdaq: TSLA) has implemented another round of significant price cuts, this time for its Model S and Model X vehicles, impacting customers in various regions, including the United States and China.
The electric vehicle manufacturer unveiled the new prices at the beginning of the month, amounting to a substantial decrease of 15-20% for the premium sedan and SUV models.
In the US, the price of the Model X Long Range saw an $18,500 reduction, dropping from $98,500 to $79,900. Meanwhile, the Model S’s price was slashed by $13,500, from $88,500 to $74,490. The price for the Plaid versions of both models also dropped by $18,500, with the Model S and Model X Plaid now starting at $89,900.
China, however, saw its second consecutive price reduction for these models within a few weeks. This double price cut resulted in the starting price of the Model X dropping from approximately $124,000 to $102,000. The Model X Plaid’s price was similarly reduced from $142,000 to $115,500. The Model S Plaid saw an even more substantial reduction, with prices falling by as much as $30,000.
While these price cuts are welcomed by prospective buyers, they have left recent purchasers with a diminished vehicle value, as their cars depreciated by 20% to 25% in just a matter of weeks.
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Tesla’s direct-to-consumer sales approach has made it challenging for the company to avoid these fluctuations, a point of contention among Tesla owners for some time.
In response to these price reductions, a group of Tesla owners in mainland China has taken a unique step by sending a petition letter to Tesla. They demand compensation for the loss in their vehicle’s value, proposing free lifetime Supercharging, free Full Self-Driving (FSD) upgrades, extended warranties, and discounts on future vehicle purchases.
These Model S and Model X owners emphasize their trust and support for Tesla while urging the company to consider the interests of its existing customers.
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