Tesla price drops: Model X becomes eligible for the Federal Tax Credit, Model S and X Plaid get an $18,500 discount

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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).

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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:

Table: The history of Tesla Model S and Model X price drops and hikes from January to September 2023.
Table: The history of Tesla Model S and Model X price drops and hikes from January to September 2023. Data source: Tesla, Inc. (TSLA). Compiled and composed by Iqtidar Ali / TeslaOracle.com.
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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)
Screenshot: Prices of all the variants of the Tesla Model X in the United States as of 5th September 2023. Source: Tesla online car configurator.
Screenshot: Prices of all the variants of the Tesla Model X in the United States as of 5th September 2023. Source: Tesla online car configurator.

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)
Screenshot: Prices of all the variants of the Tesla Model S in the United States as of 5th September 2023. Source: Tesla online car configurator.
Screenshot: Prices of all the variants of the Tesla Model S in the United States as of 5th September 2023. Source: Tesla online car configurator.

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.

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Iqtidar Ali
Iqtidar Alihttp://www.teslaoracle.com
Author of more than 1500 articles on Tesla, SpaceX, and EVs. His work has been liked and tweeted by Elon Musk and other prominent influencers. You can reach him on Twitter @IqtidarAlii

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