As with most other industries, demand for new vehicles is in a massive gulley at the moment due to the economic effects of the coronavirus pandemic. Tesla is trying to address this by slashing the prices on their vehicles – by as much as 6 percent in North America.
Now that lockdowns are starting to ease the electric vehicle manufacturer hopes it can stimulate sales by dropping the prices of their cars by up to $5,000 in the case of the Tesla Model S and Tesla Model X.
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According to Reuters, auto retail sales in North America has halved in April compared to the same time last year. It is expected to see a big recovery in May, however, as many people simply delayed their purchase rather than abandoning it.
The Model S Long Range Plus EV is now listed for $74,990 from $79,990, while the Performance version now costs $94,990. The Long Range Plus version of Model X is now listed for $79,990, which is from $74,990. The Model 3 also gets a discount, albeit less substantial, at $2,000 off list price to $37,990. For some reason, the Model Y price has not been changed.
Tesla will also be cutting their new vehicle prices by about 4 percent in China, one of their most important markets. The Model 3 EVs that are manufactured in China will not receive a discount in the eastern market.
Over time, Tesla may be using its infrastructure to make up the up-front loss in sales revenue. They have said that its Supercharger quick-charging service will no longer be free to use by new customers that purchase a Model S or Model X. We aren’t sure what that price structure will look like, yet.
Other car manufacturers like Ford, General Motors and Fiat Chrysler have decided to offer deferred payment options or 0% interest rates on new purchases.
