Tesla has had an interesting time figuring out its pricing, as new competition from more established competitors hits the EV market. The company is constantly decreasing, increasing, and generally messing with its MSRP in attempts to best meet this new competition and contend with shifting EV incentives. Now, Tesla is at it again, cutting prices on every single one of its models.
Reuters reports that prices of the Model S, Model X, Model 3, and Model Y have all dropped once again. The Model 3, in both trims, loses $1,000 off its MSRP, while the Model Y cuts $2,000. The Model X and S get bigger cuts, with Tesla slashing $5,000 off of the cars’ sticker prices.
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This puts the Model S at a base price of $84,990, and the X at $94,990 for the lowest trim. The Model 3 is more forgiving at $41,990, and the Y sits at $49,990.
This is the fifth time Tesla has adjusted pricing in 2023, which is actually steadier than the company’s 2022 prices. It only took until March of 2022 for Tesla to hit five price adjustments, while this year it’s taken the company until April. Sure, most companies only adjust their pricing once a year, but Tesla is once again innovating with live, unpredictable costs.
The next step, clearly, is to get more computers involved in determining Tesla pricing. Elon Musk is a major supporter of AI, so it makes sense for him to include more machines in the process of selling his cars. By this time next year, I predict that pricing on every Tesla model will be based on a complicated, highly researched algorithm: 14d6 times 1,000.