Following Tesla’s price cut in mid-January, other electric carmakers like Ford and Lucid trimmed the prices of their automobiles.
American automobile company Tesla has trimmed the prices of its electric cars – Model S sedan and Model X SUV – in the United States, Bloomberg reported The Elon Musk-led company previously slashed the prices of its cars in January this year.
According to the media report, the price of the Tesla Model S was trimmed by around 5%. The vehicle now starts at $89,990 from the previous price of $94,990. The company’s Model S Plaid now cost $109,990, down 4.3% from $114,990.
Tesla Model X, on the other hand, cost $99,990, down about 9% from $109,990. Model X Plaid prices have been reduced to $109,990, down 8.3% from $119,990.
The step is seen as a measure to boost demand which slumped due to a significant price hike by Tesla in 2021 in the face of part shortages and other reasons like a long waiting list and improving profit margins. However, amid growing competition in the segment Tesla previously cut the prices of its cars in January this year.
Following Tesla’s price cut in mid-January, other electric carmakers like Ford and Lucid trimmed the prices of their automobiles. Ford announced a price cut on its electric car Mustang Mach-E in January and said to significantly increase its production. Reportedly, the automobile maker is trimming prices of various Mach-E versions by up to 8% and is targeting 130,000 units of Mach-E this year, up from 78,000 in 2022.
Revving up the price war in the EV car segment, luxury electric vehicle manufacturer Lucid Group announced in February that buyers of certain variants of its Air model cars would be eligible for a $7,500 credit. Customers who would purchase Lucid Air Touring and Grand Touring, in select configurations, before March 31 will get the said discount. Moreover, the credit will be paid by the company as the cars are too pricey to qualify for the $7,500 federal tax credit; the price cap for the benefit of which stands at $55,000.