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The price slash in the Model S which came without much explanation from Tesla is certainly not a means to compromise on the quality.
Electric automaker Tesla Inc (NASDAQ: TSLA) has yet again effected a price slash in its iconic Model S cars reducing the price of both the Model S variants in the United States by $3,000. As reported by TeslaRati, the Model S Long Range Plus originally worth about $74,990 can now be purchased for just $71,990. Also, the higher variant, Model S Performance saw its price dropped from $94,990 to $91,990.
Tesla cars, as well as the electric autos from competitors, are at best seen as luxury cars but the traction EVs are gaining draws its potential from climate change legislation which will prompt a huge shift from fuel consuming cars to electric versions with zero carbon emissions. While these EV vehicles are not fully mainstream as their prices scare people away, the market potential has been impressive for EV car manufacturers like Tesla (TSLA) who delivered a record of 139,300 vehicles in Q3 2020.
The decision to slash the prices of the Model S Long Range Plus and the Performance has been attributed to the strategy to woo more customers in a bid to surpass its Q3 delivery and meet its target of 180,000 this quarter. The current slash in the price of the Model S comes for the second time this year as Tesla reduced the Model S price by $5,000 back in June
Per a report from Electrek, Tesla must have specifically singled out the Model S cars as a result of its decline in sales in the past few years. It was noted that Tesla only got orders and delivered 15,200 units of the Model S in the past quarter which fell short of the 17,400 deliveries made in the same quarter in 2019, a further plunge from the third quarter 2018 in which the company delivered 27,660 units of both Model S vehicles
Tesla stock was up 0.53% in the pre-market. TSLA stock is rising now by 2.05% and is trading at $455.78.
Tesla Model S Price Slash Is Not a Way to Compromise on Quality
The price slash in the Model S which came without much explanation from Tesla is certainly not a means to compromise on the quality of the Model S. In reality, Tesla has improved on the car increasing the range to 402 miles EPA range when fully charged as against its earlier 259-mile EPA range. The Model S also saw an upgrade from 75 kWh to 100 kWh as it currently has.
To understand that the price slash has no ulterior motives other than to boost sales, the price of the yet to be released Model S Plaid remains unchanged at $139,990 as shown in the automaker’s online showroom. From Tesla’s antecedents, it is obvious thus that the strategic price slash of its vehicles is one of the viable ways to command a fair market share as evident with reports of the company’s readiness to slash the price of its China-made Model 3.