Tesla slashes prices of Model S and Model X in the US

Tesla Inc (TSLA) has slashed prices of its two most expensive vehicle models in the United States, according to its website.

The price reductions were between 4% on the performance edition of Tesla’s Model S and 9% on the costlier Model X.

Tesla’s Chief Executive Officer Elon Musk has not once said in recent months that the company will focus on reducing prices to underpin demand.

In January, the electric car maker cut prices on its vehicles across all markets, with discounts reaching up to 20%, while many analysts viewed the move as the beginning of a price war.

According to the auto maker’s website, the price of the base all-wheel drive variant of Model S was reduced by 5% to $89,990, while the price of the Plaid version was reduced by 4% to $109,990.

Meanwhile, the price of the base all-wheel drive edition of Tesla’s Model X was slashed 9% to $99,990, while the price of the performance, Plaid variant was reduced by 8% to $109,990.

The Model S and Model X accounted for 4% of the company’s global deliveries last year, while Model 3 and Model Y accounted for the rest.

The shares of Tesla Inc (TSLA) closed 3.61% ($6.89) higher at $197.79 on Nasdaq on Friday, while snapping a three-day streak of losses.

The electric vehicle maker’s total market cap now stands at $625.827 billion.

The shares went down 65.03% in 2022, compared with a 19.44% loss for the benchmark index, S&P 500 (SPX).