Tesla has cut the 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 on its website seen by. TechCrunch.
It’s the second time this year the company has cut prices, with the Model X dropping $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 January 1 – a steep reduction of $15,000.
Neither car qualifies for federal tax credits that expire later this month, as they only apply to SUVs priced under $80,000 and cars under $55,000. Still, they will likely push many fence-sitters over the edge. It follows what CEO Elon Musk said at Tesla Investor̵[ads1]7;s Day, that “the desire for people to own a Tesla is extremely high… [but] the limiting factor is their ability to pay for a Tesla.”
Most Model 3 and Y vehicles qualify for the rebates, thanks to Tesla’s January price cuts on these electric vehicles. (As a reminder, it’s a “non-refundable” tax credit, so you’ll only take advantage of it if you have a federal tax liability of at least $7,500.) After mid-March, however, the rules will change, and many EVs that currently qualify may become ineligible.
All products recommended by Engadget have been selected by our editors, independent of our parent company. Some of our stories include affiliate links. If you purchase something through one of these links, we may earn an affiliate commission. All prices are correct at the time of publication.