Tesla Cuts Model S and X Prices for Second Time This Year

Where are the price cuts and what do we know about them in the last 24 hours? So Tesla cut the prices last night. They changed the website and the Model S is now roughly $5,000 cheaper across both models and the X is almost $10,000 cheaper. Interestingly, now the plaid is the exact same for both the S and the X. And I think what's significant is that we've seen Tesla tweak prices quite a bit. This is kind of a significant change to come in March. We have roughly three and a half, four weeks left in the quarter. Where are the price cuts and what do we know about them in the last 24 hours? So Tesla cut the prices last night.

They changed the website and the Model S is now roughly $5,000 cheaper across both models and the X is almost $10,000 cheaper. Interestingly, now the plaid is the exact same for both the S and the X. And I think what's significant is that we've seen Tesla tweak prices quite a bit. This is kind of a significant change to come in March. We have roughly three and a half, four weeks left in the quarter. Tesla definitely changes prices, but is this a demand question or is this just Tesla trying to cut costs for consumers? Well, let's jump in on that. We every day go to our audience and ask, what do you make of this story? And the question is, do these price cuts push you to buy what is a still very expensive vehicle? The results kind of mix, actually.

I would say, you know, almost 50% of respondents say, no, these are too expensive. What has Tesla said so far in 2023 about demand? Tesla definitely changes prices, but is this a demand question or is this just Tesla trying to cut costs for consumers? Well, let's jump in on that. We every day go to our audience and ask, what do you make of this story? And the question is, do these price cuts push you to buy what is a still very expensive vehicle? The results kind of mix, actually. I would say, you know, almost 50% of respondents say, no, these are too expensive. What has Tesla said so far in 2023 about demand? Because they tend to use price cuts as a lever, frankly, to find pockets of demand. Absolutely. Well, Musk said last week at Investor Day that demand for Tesla's cars is infinite and that the biggest, you know, the limiting factor is price.

So, you know, but again, I mean, the vast majority of Tesla sales right now are the three and the why. And he's even said that the S and the X are kind of like antique models that eventually will go the way, you know, and they're sort of like legacy models that they make because people are fond of them. Because they tend to use price cuts as a lever, frankly, to find pockets of demand. Absolutely. Well, Musk said last week at Investor Day that demand for Tesla's cars is infinite and that the biggest, you know, the limiting factor is price. So, you know, but again, I mean, the vast majority of Tesla sales right now are the three and the why. And he's even said that the S and the X are kind of like antique models that eventually will go the way, you know, and they're sort of like legacy models that they make because people are fond of them.

But they are still quite expensive cars. The fact that they are cutting at this point in the quarter to me means that they are trying to stoke demand. They must have inventory that they're trying to move. You have a really terrific piece out newsletter or Bloomberg Terminal piece. Both. Both newsletter and terminal piece value for money on this great deep bench of talent at Tesla. I thought this was so important and worth taking a look at.

Last week at Investor Day, Elon Musk is up on stage, a site we're familiar with. But they are still quite expensive cars. The fact that they are cutting at this point in the quarter to me means that they are trying to stoke demand. They must have inventory that they're trying to move. You have a really terrific piece out newsletter or Bloomberg Terminal piece. Both. Both newsletter and terminal piece value for money on this great deep bench of talent at Tesla.

I thought this was so important and worth taking a look at. Last week at Investor Day, Elon Musk is up on stage, a site we're familiar with. But behind him, there you see it on the screen. Sixteen or so executives. Sixteen. I don't think we have time to go through all 16, but there are sort of a top three that you've picked out. Who are these new names behind Elon Musk? Yeah.

So this is the first time that so many people have been on stage with Elon. And I think it's a clear sign that the company is trying to be like, hey, even though Elon Musk bought Twitter, we have this deep bench of talent. Tom Zoo is clearly a rising star as you've reported earlier this year. But behind him, there you see it on the screen. Sixteen or so executives. Sixteen. I don't think we have time to go through all 16, but there are sort of a top three that you've picked out.

Who are these new names behind Elon Musk? Yeah. So this is the first time that so many people have been on stage with Elon. And I think it's a clear sign that the company is trying to be like, hey, even though Elon Musk bought Twitter, we have this deep bench of talent. Tom Zoo is clearly a rising star as you've reported earlier this year. You know, Tom has kind of a growing remit within Tesla overseeing manufacturing, not just in China, but in Texas and potentially in Mexico as well. I thought the presentation by Rebecca Tanucci, who oversees charging, was spectacular. She's like an executive that we've never heard of.

And then Brendan Earhart, who's the recently hired general counsel, came to Tesla from Dish. He briefly appeared on stage and he's the first sort of big outside hire that we've had at Tesla in quite a while. You know, Tom has kind of a growing remit within Tesla overseeing manufacturing, not just in China, but in Texas and potentially in Mexico as well. I thought the presentation by Rebecca Tanucci, who oversees charging, was spectacular. She's like an executive that we've never heard of. And then Brendan Earhart, who's the recently hired general counsel, came to Tesla from Dish. He briefly appeared on stage and he's the first sort of big outside hire that we've had at Tesla in quite a while.

Just showing those kind of less familiar names on the screen just then. You're right, we've reported Tom's view now has kind of moved away from China where he was really focused to globally looking at manufacturing. Earhart, interesting. You and I have reported a lot on the turnover of legal names at Tesla. You've covered Tesla for so long and you've done so many of these events. Why was this one different? What was the kind of standout feature of it? Well, this was, I mean, it was a four hour event. So it was quite the long saga.

Just showing those kind of less familiar names on the screen just then. You're right, we've reported Tom's view now has kind of moved away from China where he was really focused to globally looking at manufacturing. Earhart, interesting. You and I have reported a lot on the turnover of legal names at Tesla. You've covered Tesla for so long and you've done so many of these events. Why was this one different? What was the kind of standout feature of it? Well, this was, I mean, it was a four hour event. So it was quite the long saga.

It reminded me a little bit of Battery Day 2.0 in which they were giving a lot of very detailed, highly technical information about their thinking. But there wasn't a clear product announcement. I think a lot of retail investors and Wall Street, frankly, were disappointed. They wanted to see a concept of the car. They didn't want to see like a future car under a white sheet, which is what the slide showed. But we did get to hear from a lot of people.

And I mean, you know, part of Tesla's talent is people and it's rare that they showcase people. It reminded me a little bit of Battery Day 2.0 in which they were giving a lot of very detailed, highly technical information about their thinking. But there wasn't a clear product announcement. I think a lot of retail investors and Wall Street, frankly, were disappointed. They wanted to see a concept of the car. They didn't want to see like a future car under a white sheet, which is what the slide showed.

But we did get to hear from a lot of people. And I mean, you know, part of Tesla's talent is people and it's rare that they showcase people.

Dana Hull, Ed Ludlow, Electric Vehicles, Elon Musk, Tesla Motors Inc.