Tesla slashes prices for Model S and Model X for second time this year

Tesla has slashed the price of its premium Model S and Model X electric vehicles for the second time in 2023, taking total reductions to as much as $US29,000 ($A43,000) as the EV price war intensifies.

An overnight update to the company’s US configurator shows cuts of $US5000 for the Model S Long Range AWD and Tri-Moto Plaid, and a $US10,000 price cut in both the Model X Long Range AWD and Plaid versions.

• Model S Long Range AWD: now $US89,990 ($A134,000), down from $US94,990
• Model S Tri-Motor Plaid: now $US109,990 ($A163,000), down from $US114,990
• Model X Long Range now AWD: $US99,990 ($A149,000), down from $US109,990
• Model X Tri-Motor Plaid: now $US109,990 ($A163,000), down from $US119,990

The cuts mean the Model S and Model X Plaid variants now cost the same.

The Model S was Tesla’s first real production car and came out in 2012 with the Model X launched three years later in 2015. The S and the X were both built on Tesla’s first generation platform. Tesla’s Model 3 which along with Model Y, is based on Tesla’s second generation platform was launched in 2017.

While the S and the X really marked the stage when Tesla made the leap from a “retrofitting” production style used to make the Roaster in the early days, the Model S and X now only make up around 5% of Tesla’s total production with the mass produced Model 3 and Y no making up around 95%.

Tesla produced just over 70,000 Model S and X cars in 2022 and almost 1.3 million Model 3 and Model Ys. After minimal changes to the original design in almost 10 years, Tesla launched a refresh of the Model S and X in mid-2021.

Part of the refresh, the Tri-Motor Plaid variants, are the fastest accelerating production cars in the world with a 0-100 km/h of just 1.9 seconds. The refresh also included a new interior, changing the touchscreen to a landscape orientation and the addition of a yoke steering wheel.

The price cuts of Tesla’s flagship models come just two months after Tesla made huge price cuts across its whole range in January. The Model 3 and Y price cuts in January made huge news in the automotive industry and essentially kicked off an EV price war that forced other EV makers to also cut their prices significantly.

Tesla’s Model S and X price cuts in January largely flew under the radar.

Cuts made in January:

• Tesla Model S: Reduced from $US104,990 to $US94,990
• Tesla Model S Plaid: Reduced from $US135,990 to $US114,990
• Tesla Model X: Reduced from $US120,990 to $US109,990
• Tesla Model X Plaid: Reduced from $US138,990 to $US119,990

Including the January cuts, the Model S and X Plaid have now dropped a whopping $US26,000 ($A38,600) and $US29,000 ($A43,000) respectively.

The new price cuts also come as Tesla recently updated the Model S and X to include Tesla’s new Hardware 4 computer with new cameras and sensors.