Tesla cut prices of its high-end Model S and Model X electric cars by $5,000 (5.2 percent) and $10,000 (9.1 percent), respectively, according to changes in website Seen by Techcrunch.
It’s the second time this year that the company has cut prices, so the Model X is down $21,000 from $120,990 at the start of the year to just $99,990 currently. The Model S, meanwhile, has dropped from $104,990 to $89,990 since Jan. 1 — a steep $15,000 drop.
Neither vehicle qualifies for federal tax deductions that are set to expire later this month, as these only apply to SUVs under $80,000 and cars under $55,000. However, they are likely to push many of those sitting on the fence over the edge. This goes along with what CEO Elon Musk said at Tesla Investor Day, that “people’s desire to own a Tesla is very high… [but] The limiting factor is their ability to pay for a Tesla.
Most Model 3 and Y cars qualify for discounts, thanks to Tesla’s January price cuts on those electric vehicles. (As a reminder, it’s a “non-refundable” tax credit, so you’ll only benefit if you have a federal tax liability of at least $7,500.) The rules will change Many electric vehicles that currently qualify may no longer qualify.
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