Tesla, Inc. (TSLA) has once again dropped the prices of its high-end Tesla Model S and Model X vehicles. Both of these Tesla EVs have received massive discounts in 7 installments (from January to September 2023).
One interesting thing has happened in the due process of the declining price of the Tesla Model S luxury electric SUV — it has become eligible for the Federal Tax Credit of $7,500. The price requirement for an electric SUV to receive the US Federal Tax Credit is a maximum of $80,000.
With the latest manufacturer-suggested retail price (MSRP) of $79,990, the Tesla Model X barely slipped itself under the eligibility criteria. Ironically, the Tesla Model S being a sedan did not qualify for the Federal EV Tax Credit (the maximum price cap for sedans is $55,000, source: IRS website).
In one of our previous reports, we covered in detail how the Tesla Model 3 and Model Y qualify for the full $7,500 Federal Tax Credit. Now Model X has also joined the club with the price drop on 1st September.
A Tesla Model X can now be owned for as low as $72,490 after availing of the $7,500 Federal Tax Credit ($79,990 – $7,500).
Tesla added a new base variant named ‘Standard Range’ for both Model S and Model X last month. But the automaker has now retracted from this decision. It was creating confusion among potential buyers. Now the base variants are the simple All-Wheel Drive Model S and Model X.
Since the Tesla Model X Plaid performance variant exceeds the max MSRP, it’s not eligible for the Federal Tax Credit. Only the base variant qualifies for the benefit.
Tesla Model S price has dropped by around 28.5% and Model X price by 34% since the start of this year. We have prepared the following chart showing Tesla Model S and Model X price changes from 1st January to 1st September 2023:
Now let’s go over the prices of all the variants of the Tesla Model S and Model X after the latest price drops.
Tesla Model X New Prices
Here are the new Tesla Model X prices after the prices dropped across all variants:
- Tesla Model X AWD: $79,990 (previous: $88,490)
- Tesla Model X Plaid: $89,990 (previous: $108,490)
Let’s not miss another interesting part here, the price of the Tesla Model X Plaid has dropped massively. Tesla discounted the price of a Tesla Model X Plaid by $18,500 in its September 1st price drop.
Tesla Model S New Prices
- Tesla Model S AWD: $74,990 (previous: $78,490)
- Tesla Model S Plaid: $89,990 (previous: $108,490)
Same as the Tesla Model X Plaid, Model S Plaid has also gone down in price by $18,500. This is a huge discount Tesla is giving on its top-tier performance vehicle with a 0-60 mph time of 1.99 seconds.
However, some Tesla Model S and Model X owners are not happy in the Tesla Community over these large discounts that the automaker has just released. A lot of existing owners bought their Model S/X for a significantly higher price.
Dropping price massively on the luxury vehicle segment in the last month of Q3, Tesla is definitely poised to sell a lot more Model S and Model X vehicles compared to Q2 2023.