Tesla applied new incentives and discounts to its electric vehicle lineup on June 17, lowering the Model X and Model S prices and offering three years of free Supercharging.
Dual motor and all-wheel drive versions of the Model X and Model S now cost approximately $8,000 less than they did a week ago, with the latter now retailing for $82,790. Tesla will also give buyers, who purchase one of the two EVs before June 30, free Supercharging for three years.
These discounts come just two months after Tesla raised prices for both EVs by $2,500. The electric car manufacturer has made multiple price adjustments since last December to the confusion of investors and shareholders who were used to the company’s long-held stance against discounts. However, in its previous quarterly report, the brand’s delivery numbers indicated that demand for its higher-priced cars had fallen below its production rate, meaning it had a surplus of inventory, a bad look for an automaker proclaiming to own the world’s “top-selling car.”
To address this issue, CEO Elon Musk has said the company will prioritize demand over profit margins by lowering prices and incentivizing purchases. The Model X and Model S discounts, in addition to the Supercharging promotion, are continuations of this strategy. Their arrival, so close to the end of the quarter, is also hardly a coincidence. Production for both EVs remained high after March, and although output has slowed for the Model X since mid-May, Model S listings have continued to grow since the start of June. If Tesla can ramp up purchases before its next quarterly report, it could avoid raising eyebrows over the effectiveness of its demand-driving tactics.