Tesla has cut the prices of its Model S and X vehicles for the second time this year.
The electric carmaker has been reducing prices to stoke demand for its vehicles amid increased competition.
On Jan. 12, Tesla slashed prices by up to 20% in the U.S. and EU in a bid to stoke demand.
- The top-end Plaid versions of the company's premium S and X models are now $26,000 and $29,000 cheaper than they were in early January.
- Tesla CEO Elon Musk said demand for the company's vehicles was “indistinguishable from infinite,” suggesting that the earlier price drop was effective.
- The latest decision to reduce the cost of Tesla's premium vehicles may indicate that demand for top-of-the-line cars initially remained weak despite the earlier price cut.
Zoom Out:
- Tesla raised the prices of its Model Y SUV last week after the Biden administration said that more cars would qualify for the Inflation Reduction Act's electric vehicle tax credit.
- The company is unique in applying dynamic pricing to its vehicles. Other carmakers usually only change prices between model years.
