Tesla just cut its car prices by up to $5,000 to jump-start sales during the pandemic
Teslahas significantly cut pricing for three of its models, Reuters reports.
- The Model 3 sedan is now $2,000 cheaper and starts at $37,990.
- Tesla slashed pricing for its Model S and Model X models by $5,000, bringing their base prices to $74,990 and $79,990, respectively.
- But the company has also nixed free Supercharger access for Model S and X buyers, which is something it's eliminated and brought back before.
Tesla has slashed pricing for its Model 3, Model X, and Model S models as the coronavirus pandemic ravages US car sales, as Reuters reports.
According to the electric-car manufacturer's website, the Model 3 — Tesla's cheapest offering — now starts at $37,990, down $2,000 from its previous retail price of $39,990. The Model S sedan, which used to carry a base price of $79,990, can now be had for $74,990. Tesla's priciest model, the Model X crossover SUV, also got a $5,000 price cut that brings its base price to $79,990.
Pricing for the Model Y, the newest addition to Tesla's lineup, remains unchanged at $52,990 for the base model.
Tesla did not immediately respond to Business Insider's request for comment, nor did it issue an official explanation for the changes. However, the company probably cut prices in an effort to boost new-vehicle sales as areas across the US begin loosening lockdown restrictions and reopening their economies.
US car sales likely dropped by half in April as compared with the same month last year, Reuters reported, citing data from J.D. Power. For the first quarter of 2020, nearly every major automaker reported plummeting sales as the coronavirus pandemic kept buyers home and sent the global economy tumbling.
Subaru of America's sales dropped by 47% in March, for instance, while Volkswagen of America's figures fell 42%. But Tesla was the rare exception in Q1, with global sales rising by 40.3%.
In the face of cratering sales and revenues, several automakers began offering deals like extended lease terms and low financing rates early on in the pandemic. The Big Three US automakers all began offering deferred payment initiatives along with 0% financing on new-car purchases, for example.
According to Reuters, Tesla also eliminated free Supercharger access for Model S and Model X buyers, a perk which the company has added and nixed multiple times in the past.
Plus, although Tesla's cars may be getting cheaper, some of the automaker's options are getting more expensive. Last week, Tesla CEO
Despite its name, Tesla's "full self-driving" feature is not currently fully autonomous.
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