Tesla is cutting the prices of Model S and X in the US by up to 10,000 dollars

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.

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