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
Iqtidar has been writing about Tesla, Elon Musk, and EVs for more than 3 years on XAutoWorld.com, many of his articles have been republished on CleanTechnica and InsideEVs, maintains a healthy relationship with the Tesla community across the Social Media sphere. You can reach him on Twitter @IqtidarAlii

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