Breaking: Tesla Massively Cuts Model S, X & FSD Prices, Model X Now Qualifies For $7.5K EV Tax Incentive

In a surprise move late last night, Tesla has once again massively cut Model S & X prices. However, even more interestingly, Tesla has also cut FSD prices for the first time in years.

Only 2 weeks ago, Tesla introduced a new “Standard Range” Model S & X variants. These variants had software-limited range and performance numbers that saw the Model S & X EPA ranges decrease to 320-mile and 269-mile respectively.

After these substantial range decreases, Tesla gave the new Standard Range Model S & X variants a $78,500 and $88,500 starting price, respectively.

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This was seen as an important move to make Tesla’s more premium vehicles more affordable. However, today, Tesla has blown the price cuts of the Standard Range Model S & X out of the water. 

After the current price adjustments, The Long Range Model S & X with 405-mile and 348-mile EPA ranges respectively now have a starting price even lower than that of the Standard Range variants introduced last week.

After tonight’s price cuts, the Model S Long Range now starts at $74,990 and the Model X Long Range’s starting price has fallen to $79,990. This means the Long Range Model S and X prices are now $3,500 and $8,500 cheaper than the Standard Range variants of the same vehicles.

And as you could’ve guessed already, together with the price cuts, Tesla also discontinued the Standard Range Model S & X only a week after their introduction.

Before tonight’s price cuts, the Model S & X Long Range had a starting price of $88,500 and $98,500 respectively. This means the Model S Long Range saw a $13,500 price decrease and the Model X Long Range saw an $18,500 price cut.

Another point worth noting is after the recent price cuts which put the starting price of the Model X below $80,000, the all-electric SUV now qualifies for the $7,500 federal EV tax incentive. This means for anyone who qualifies for the EV tax incentive, the Model X Long Range can now be had for as little as $72,500.

The recent price cuts have also made the Model X eligible for some state tax incentives. For example, in Colorado, the Model X, in addition to the $7,500 EV tax incentive, now qualifies for an additional $5,000 state incentive. This brings down the price of the Model X in the Sunshine State to as little as $67,500.

Sadly, due to the fact that the Model S is categorized as a sedan, which has a $55,000 MSRP limit to qualify for the tax incentive, despite the equally significant price cuts, the Model S will not be getting the $7,500 incentive. This means, that for anyone who qualifies for the tax incentive, the Model X might be cheaper and in some states as much as $7,500 cheaper than the Model S.

The Model S & X Plaid also saw similar $18,500 price cuts and now both vehicles have an $89,900 starting price. Less than a year ago, the Model S & X Plaid had a starting price of $135,990 and $139,990 respectively meaning, after the latest round of price cuts, the Model X Plaid is $50,000 cheaper and the Model S Plaid $45,000 cheaper.

Cutting the price of the exact same vehicle by as much as $50,000 in less than a year raises questions about Tesla’s profitability which has been going down significantly in the past few quarters.

Having said that, the starting price of the quickest accelerating production vehicle in the world, which embarrasses multi-million dollar hypercars, is now below $90,000. This makes the Model S Plaid one of the best value-for-money deals in the automotive world.

In addition to the price cuts, Tesla has also made all color options free, which means a fully loaded Model X, which had a $169,000 price tag just last year, can now be had for $110,000 ticking all available options.

And if the price cuts to the vehicles weren’t enough, Tesla has finally gone ahead and cut the price of the FSD package which has remained unchanged at $15,000 for years now. After the price cuts, the FSD package in all Tesla vehicles now starts at $12,000.

Although a $3,000 price cut might not seem like a lot in nominal value, the price adjustment is nonetheless a 25% decrease seen in light of the percentage of the total price of the option. Although the Model S & X price cuts were massive, this makes the FSD price cut perhaps even more surprising.

Elon Musk recently live-streamed Tesla’s revolutionary FSD v12 in action and given all the improvements Tesla has made, the software is expected to be released to customers soon, This would suggest an FSD price increase rather than a decrease but for better or worse now customers will be able to purchase the option for significantly cheaper.

To be totally frank, all these price cuts do not look good for Tesla’s profitability in the short term and point to weakening demand. Currently, neither Tesla nor Elon Musk on his own has commented on the price cuts however, we’ll be sure to keep you posted if we learn more information.

Until then, make sure to visit our site torquenews.com/Tesla regularly for the latest updates.

So what do you think? Happy to see Model S, X, and FSD prices fall this much? Also, given all the price cuts, how do you assess Tesla’s short-term demand? Let me know your thoughts in the comments below.

Image: Courtesy of Tesla, Inc.

For more information check out: Tesla Researchers Announce a 4 Million-Mile Battery But It’s Only The 3rd Best Cell Chemistry They Discovered

Tinsae Aregay has been following Tesla and The evolution of the EV space on a daily basis for several years. He covers everything about Tesla from the cars to Elon Musk, the energy business, and autonomy. Follow Tinsae on Twitter at @TinsaeAregay for daily Tesla news.